Oil Prices Surge on Tanker Attacks and Stalled Ceasefire Talks

Crude oil prices surged on Friday due to tanker attacks and stalled ceasefire talks between the US and Iran. Brent futures settled at $88.52 a barrel, up $1.45 or 1.67%, while US West Texas Intermediate crude finished at $82.40, up $1.15 or 1.42%. Andrew Lipow, president of Lipow Oil Associates, attributed the rally to new attacks on tankers and lack of progress on a cease-fire agreement.

Lipow warned that if traffic in the Strait of Hormuz remains constrained, where 20% of global supply can pass, it could lead to a 'day of reckoning'. The US has threatened to maintain its naval blockade of Iran indefinitely and increase economic pressure on Tehran. Treasury Secretary Scott Bessent said 'we are going to apply measures like have never been seen in the history of economic isolation of a country.'

Two vessels from Abu Dhabi National Oil Company were attacked while transiting the strait, which handled about one-fifth of global oil and liquefied natural gas supplies before US-Israeli attacks on Iran began. The incident was condemned as an Iranian attack by the UAE government.