Oil Prices Drop Amid Red Sea Tensions, Still Headed for Weekly Gain

Oil prices dropped by over 3% on Friday but are still poised for a weekly gain due to concerns about disrupted energy flows in the Red Sea and escalating tensions between the US, Israel, and Iran.

The Brent futures price fell nearly $4, or 3.96%, to $96.70 per barrel at 0946 GMT, having reached above $100 in the previous session for the first time since May.

PVM Oil Associates analyst John Evans noted that 'major hubs of oil production or supply routes are surrounded by war... The short-term outlook is bullish.'

The attacks on Saudi tankers in the Red Sea have disrupted energy flows, with Iran vowing to continue striking the Gulf region as long as it remains under attack from US strikes.