Oil Prices Skyrocket as Tanker Attacks Escalate Middle East Tensions

Crude oil prices surged on Friday due to tanker attacks and stalled peace talks between the US and Iran. Brent futures settled at $88.52 a barrel, up $1.45 or 1.67%, while U.S. West Texas Intermediate crude futures finished at $82.40, up $1.15 or 1.42%. The prices are on track for weekly gains of 6.0% and 5.4% respectively.

Andrew Lipow, president of Lipow Oil Associates, said the rally is due to new attacks on tankers and lack of progress on a cease-fire agreement. He warned that if traffic in the Strait of Hormuz remains constrained, it could lead to a 'day of reckoning' as 20% of global supply passes through this channel.

Treasury Secretary Scott Bessent said the US is prepared to maintain a naval blockade of Iran indefinitely and increase economic pressure on Tehran. This move has been met with condemnation from Iran, which claims control over the Strait of Hormuz.