US-Iran Tensions Fuel Rise in Oil Prices Amid Middle East Supply Disruptions
Escalating tensions between the United States and Iran have driven up oil prices, as concerns about disruptions to Middle East supplies grow. Brent crude futures rose by 15 cents, or 0.2%, to $95.67 a barrel at 01:00 GMT, while US West Texas Intermediate (WTI) crude was up 26 cents, or 0.3%, at $91.56 a barrel.
The week's gains for both benchmarks are significant, with Brent up 7.1% and WTI climbing 9.8%. If the trend continues, it would be the biggest weekly increase since July.
US-Iran tensions have been escalating, particularly in the Strait of Hormuz, a narrow maritime passage that has become a key pressure point for oil markets. The US has warned Iran that it will not negotiate until Tehran stops attacking commercial vessels in the strait.
Russian President Vladimir Putin's statement that the path toward a deal to end the war in Ukraine remains open may have restrained some gains, but the situation in the Strait of Hormuz and actual export volumes from countries in the region remain key factors in determining oil prices' future direction.