Oil Prices Rise as Middle East Tensions Escalate

Oil prices slipped on Friday but remained on track to end the week above $100 a barrel for the first time since mid-May, according to Reuters. The Brent crude futures fell $1.65, or 1.53%, to $105.98 a barrel by 0758 GMT, while U.S. West Texas Intermediate crude fell $1.36, or 1.33%, to $101.12 a barrel.

The benchmarks pared all early gains to trade lower after the Financial Times reported that foreign ministers in the Middle East are trying to work out a temporary deal with Iran to manage shipping through the Strait of Hormuz. The Strait of Hormuz handled about one-fifth of global daily oil and liquefied natural gas supplies before the Iran war began in late February.

Iran said it had attacked 10 ships near the Strait of Hormuz on Wednesday, after the U.S. hit five Iranian oil tankers. Vessel transits at the Strait of Hormuz fell to seven on Thursday from 11 the previous day, preliminary ship-tracking data showed on Friday.

The International Energy Agency said global oil supply and demand will fall further than previously thought this year, as a lack of progress in ending the Iran war delays the return of normal Middle East flows into 2027. U.S. diesel prices hit a record high as attacks along key Middle East shipping routes stoked prolonged supply disruption fears.

U.S. President Donald Trump has not shown any signs of easing attacks on Iran, and warned the U.S. may hit Iran's Pickaxe Mountain near its heavily damaged Natanz uranium enrichment facility, but said he thought the war would end immediately after the November midterm elections.