Oil Prices Rise as US-Iran Conflict Disrupts Hormuz Shipping

Oil prices rose on Friday and were poised for weekly gains as renewed US-Iran fighting disrupted shipping in the Strait of Hormuz, sparking concerns over supply disruptions.

Brent futures gained $0.60 (0.8%) to reach $76.90 a barrel by 11:31 GMT, while WTI crude rose $0.46 (0.6%) to $72.54.

Vandana Hari at oil market analysis provider Vanda Insights said there is 'still a substantial risk premium' as Hormuz transits are back to a near-standstill with no clear signs of when normal reopening might resume.

The recent escalation in hostilities between the US and Iran could upend the International Energy Agency's forecast of a significant oil market surplus next year, it said on Friday.