Trump's Threats Push Brent Crude Prices Higher
Brent crude oil prices remained high despite a pullback on Friday, ending the week up over 12% due to growing geopolitical tensions affecting global energy supplies.
The US launched its 13th consecutive day of strikes against Iran, with both sides ruling out near-term talks. President Trump threatened 'major military punishment' against Iran and the Houthis for any further attacks on Red Sea shipping, and said he was considering a 'massive attack' on Iran.
The threats followed an attack by Iran-backed Houthi militants on two Saudi oil tankers in the Red Sea, which is a key alternative export route for Saudi Arabia. Asian buyers have started discussing rerouting Saudi crude shipments through the Suez Canal and around Africa to avoid disruptions at the Strait of Hormuz.
The Caspian Pipeline Consortium also suspended crude loadings at its Black Sea terminal after tanker attacks, affecting about 80% of Kazakhstan's oil exports.