Oil Prices Rise on Iran-US Jitters Amid Strait of Hormuz Supply Risk

Oil prices rose at the end of the week due to jitters over potential US military action against Iran. Brent crude futures settled at $71.76 a barrel, up 10 cents or 0.14%, while U.S. West Texas Intermediate crude finished at $66.39 a barrel, down 4 cents or 0.06%. The market was waiting for developments in the struggle between Iran and the US.

According to Phil Flynn, senior analyst with Price Futures Group, 'We're caught in between anticipation what's going to happen with the U.S. and Iran and denial an attack's going to happen.' He noted that a recent US Supreme Court decision ruling unconstitutional Trump's use of a law to levy tariffs in national emergencies had little effect on crude prices.

Traders and investors are betting on rising oil prices, with Saxo Bank analysis showing increased purchases of call options on Brent crude. This is due in part to the Strait of Hormuz supply risk, as Iran lies opposite the oil-rich Arabian Peninsula across this key shipping route through which about 20% of global oil supply passes.