US-Iran Conflict Drives Oil Prices Higher, Putting in for Weekly Gain

Oil prices surged on Friday, putting them on track for a weekly gain of over 5%, as the US and Iran continued to exchange fire in their ongoing conflict. Brent crude futures fell by 1.66% to $93.93 per barrel by 6:19 PM UAE time, while US West Texas Intermediate crude dropped by 2.1% to $89.38.

The strong weekly performance for oil prices has been driven by the prolonged fighting between the US and Iran, which has disrupted Middle Eastern flows and pushed up global fuel costs. Average US diesel prices reached record highs this week, while European stockpiles of diesel are below seasonal levels due to supply disruptions.

Analysts say that commodities are caught in a difficult position, with rising rates and inflation putting pressure on energy and agricultural markets. However, Ole Hansen from Saxo Bank noted that certain sectors such as energy and agriculture continue to benefit from scarcity and geopolitical disruption.