Oil Prices Soar on Middle East Tensions and Disrupted Energy Flows

Oil prices are on track for a significant weekly gain due to concerns about disrupted energy flows in the Red Sea and fears of further escalation in the U.S.-Israeli war on Iran.

The Brent futures contract fell $1.12, or 1.11%, to $99.55 a barrel at 0648 GMT, but remained up 7% from the previous session's close. The contract is still set for a 13% advance this week.

ING analysts noted that potential supply disruptions are larger than at any time during the war, with oil flows through the Strait of Hormuz effectively halted and risks to Saudi oil flows from the Red Sea on the rise.

The Strait of Hormuz saw only one tanker crossing on Thursday, according to ship-tracking data from Kpler. The Bab el-Mandeb shipping route, which controls access from the Red Sea to the Indian Ocean, is also at risk due to the naval blockade imposed by Iran-aligned Houthis on Saudi Arabia.