Oil Prices Slip on Friday but Still Headed for Weekly Gain Amid US-Iran Conflict
Oil prices fell on Friday but are set to close the week up over 6% following renewed military exchanges between the US and Iran. The conflict has disrupted supply chains, pushing fuel prices to a record high in the US.
The price of Brent crude futures declined by 23 cents or 0.24%, trading at $95.29 a barrel. West Texas Intermediate (WTI) crude futures dropped 54 cents or 0.59% to $90.76 per barrel.
Despite the decline on Friday, both Brent and WTI are up for the week, with Brent gaining 6.1% and WTI rising 8.3%. The rally in oil prices has contributed to higher inflation and government borrowing costs worldwide, raising concerns about a potential economic downturn.
Claudio Galimberti, chief economist at Rystad Energy, attributed the rise in government bond yields to expectations of continued inflation. He noted that diesel prices have hit record highs due to supply disruptions caused by the conflict in the Middle East and Ukraine's attacks on Russian refineries.