Tanker Attacks and Stalled Peace Talks Send Oil Prices Soaring

Crude oil prices surged on Friday as fresh tanker attacks and stalled peace talks between the US and Iran fueled the gains. Brent futures settled at $88.52 a barrel, up $1.45 or 1.67%, while WTI crude finished at $82.40, up $1.15 or 1.42%. Both benchmarks are set for weekly gains above 5%.

Andrew Lipow, president of Lipow Oil Associates, attributed the rally to new attacks on tankers and lack of progress on a ceasefire agreement. He warned that constrained traffic through the Strait of Hormuz could lead to a 'day of reckoning' with prices potentially rising to $80 a barrel for crude oil.

Treasury Secretary Scott Bessent said the US will maintain a naval blockade of Iran indefinitely and ramp up economic pressure on Tehran in response to stalled ceasefire talks. The strait, which carries about a fifth of global oil supply, saw shipping traffic fall below its monthly average as the US and Iran made competing claims over control.

Two vessels belonging to Abu Dhabi National Oil Company were attacked while transiting the strait, with the UAE government condemning it as an Iranian attack. Phil Flynn, senior analyst at Price Futures Group, said this 'headline' pushed up prices.