Middle East Tensions Send Oil Prices Soaring to Weekly Gains

Oil prices are set to rise for the week due to concerns about disrupted energy flows in the Red Sea and fears of further escalation in the US-Israeli war on Iran. The Brent futures contract fell $1.12, or 1.11%, to $99.55 a barrel on Friday but remains on course for a 13% advance this week.

The potential supply disruptions facing the market now are larger than at any time during the war, according to ING analysts. 'Not only have oil flows through the Strait of Hormuz essentially dried up, but there are clear risks to Saudi oil flows from the Red Sea,' they said in a note on Friday.

The number of tankers crossing through the Strait of Hormuz fell to just one on Thursday, the lowest since May 7, according to ship-tracking data from Kpler. The Bab el-Mandeb shipping route controls access from the Red Sea to the Indian Ocean and is the second-most-important oil channel after the Strait of Hormuz.

Kazakhstan's energy ministry said oil companies temporarily cut back production after suspected Ukrainian drone attacks forced the country's main Black Sea export terminal to close. The Caspian Pipeline Consortium stopped receiving oil from Kazakhstan after suspending loadings because of attacks on tankers at the terminal, industry sources said on Tuesday.