Oil Prices Surge Amid Escalating Iran Sanctions and Strait of Hormuz Restrictions

Crude oil prices are poised for their second consecutive weekly gains as tensions between Washington and Tehran continue to escalate. On Friday, Brent crude futures dipped by 0.18% to settle at $93.61 per barrel, while West Texas Intermediate declined by 0.41% to reach $86.47.

The market's momentum is driven in part by the looming threat of unprecedented economic sanctions from Washington, which could further disrupt global oil supplies. Treasury Secretary Scott Bessent announced earlier this week that Tehran would face severe penalties, prompting a sharp increase in crude prices.

The Strait of Hormuz, a critical waterway for oil transportation, remains severely restricted, with only seven commercial vessels passing through on Thursday - a 50% reduction from the previous day's traffic volume. Iranian officials have maintained that the strait will remain closed until Washington meets its commitments outlined in the June peace agreement.

Market analysts expect supply conditions to remain constrained for an extended period, which has contributed to the recent price increases. The ongoing conflict between the US and Iran has also affected major producing nations such as Saudi Arabia, Iraq, the United Arab Emirates, and Kuwait.