Trump's Threats Keep Oil Supply Risks Alive Amid Price Pullback

Crude oil prices have pulled back on Friday after their most violent weekly rally since the conflict in the region began. The supply picture that drove this rally has not changed, however. Iran's restriction of Hormuz remains in place, and a recent Houthi attack on Saudi tankers near Bab el-Mandeb has put pressure on the kingdom's backup route through the Red Sea.

Saudi exports were already falling before the blockade, and fuel markets are running at record margins under the crude trade. President Trump promised 'major military punishment' for Iran and the Houthis after the tanker attacks, saying Tehran would be held responsible for future Houthi actions against shipping.