Oil Prices Surge Amid Middle East Escalation and Red Sea Disruptions

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

The price of Brent crude futures fell $1.12, or 1.11%, to $99.55 a barrel at 0648 GMT after Iran-aligned Houthis said they struck two Saudi oil tankers in the Red Sea.

ING analysts noted that 'the potential supply disruptions facing the market now are larger than at any time during the war,' with risks to Saudi oil flows from the Red Sea and further escalation in the Gulf putting a significant amount of oil supply at risk.

The number of tankers crossing through the Strait of Hormuz fell to just one on Thursday, according to ship-tracking data from Kpler.