Oil Prices Soar Above $100 Per Barrel Amid Regional Tensions
Oil prices are poised to close the week above $100 per barrel for the first time since mid-May, despite falling on Friday. The Brent crude futures price dropped by $1.64, or 1.5%, to $105.99 a barrel, while U.S. West Texas Intermediate crude fell by $1.28, or 1.3%, to $101.20 a barrel.
The decline came after the Financial Times reported that foreign ministers in the Middle East were trying to negotiate a temporary deal with Iran to manage shipping through the Strait of Hormuz.
The region has seen increased attacks on key shipping routes, fueling concerns about prolonged disruptions to supplies. Iran-aligned Houthis seized control of Yemen's port of Mocha on Thursday, posing an additional threat to Red Sea traffic.
Analysts warn that the situation is fragile and volatile, with ING saying 'while meaningful volumes are still moving through the Strait of Hormuz, flows remain well below pre-war levels.'