Oil Prices Retreat from Record High but Set for Weekly Gain on Middle East Tensions
Oil prices retreated on Friday after hitting above $100 per barrel for the first time since May, but are still set to rise by nearly 10% this week due to concerns over disrupted energy flows in the Red Sea and escalating tensions between the US and Iran.
The Brent crude futures price fell by nearly $4 or 3.96% to $96.70 a barrel at 0946 GMT, while West Texas Intermediate (WTI) futures dropped by $3.15 or 3.42% to $89.04 a barrel.
US President Donald Trump vowed 'major military punishment' for Iran and its Houthi allies after the strikes in the Red Sea.
Analysts say that each additional month of disruption to oil supply would add around $7 to $8 per barrel to Brent, lifting monthly average prices to around $114 a barrel if disruptions extend to three months.