Oil Prices Fall But Remain On Track For Strongest Weekly Gains In Months Amid Ongoing Middle Eastern Tensions

Oil prices fell nearly 3% on Friday as traders took profits after Thursday's rally, but remain poised for their strongest weekly gains in months.

The Brent crude futures price dropped by $2.93 to $97.72 a barrel, while US West Texas Intermediate (WTI) crude futures fell $2.31 to $89.87 a barrel.

The decline comes as geopolitical tensions in the Middle East continue to raise concerns over global energy supplies, with hostilities showing no signs of easing between the United States, Israel, and Iran.

The US military said it completed its 13th consecutive wave of strikes against Iranian targets early Friday, targeting drone storage sites and coastal surveillance positions aimed at reducing Tehran's ability to threaten commercial shipping through the Strait of Hormuz.

Analysts at Deutsche Bank noted that 'the most obvious impact of the escalation could be seen in energy prices,' while JPMorgan warned that each additional month of disruption to oil supply would add around $7 to $8 a barrel to Brent, potentially pushing monthly average prices to about $114 per barrel if disruptions persist for three months.