- Oil prices were little changed on Friday, but were on track for a second weekly rise as the stalemated U.S.-Iran war continues to disrupt supply from the key Middle East producing region.
- Brent crude futures rose 4 cents to $93.82 a barrel, while U.S. West Texas Intermediate crude futures slipped 6 cents to $86.78 a barrel.
- During the previous five days of gains, Brent gained more than 7% and WTI climbed more than 8%, reaching their highest since July 24.
- Prices have climbed on concerns the inconclusive state of the U.S.-Israeli war on Iran will mean the continued curtailment of supply from major oil producers such as Saudi Arabia, Iraq, the UAE, and Kuwait.
- The earlier peace deal between them expired this week with no effort by either side to restart talks and U.S. President Donald Trump threatened economic retaliation against nations supporting Iran.
- On Wednesday evening, Trump announced 'economic warfare and isolation on an unprecedented scale' against Tehran, warning of consequences for any country that provided 'any type of lifeline to Iran'.
- This week, the United Arab Emirates halted all financial and economic transactions with Iran until further notice, highlighting the fraught ties between the major Gulf Arab oil producer and Tehran.
- Thousands of people have been killed in the Iran war, which began on February 28 when the U.S. and Israel launched military strikes on Iran. Since then, Tehran's blockade of the Strait of Hormuz and Iranian attacks on energy facilities across the Middle East have disrupted global oil and gas flows.
- Shipping traffic through the Strait of Hormuz on Wednesday dropped from the day before with nine vessels transiting the waterway, far below pre-war levels. Prior to the Iran war, shipments equal to about one-fifth of global consumption moved through the waterway.
- IG analyst Tony Sycamore said on Friday: 'Both sides are dug in but lacking the luxury of time to play the waiting game', against a backdrop of crude prices grinding unerringly higher.
Oil prices are on track for a second weekly rise, with Brent crude at $93.82 and WTI at $86.78, as the ongoing U.S.-Iran conflict disrupts supply from the Middle East.15
The stalemated war has raised concerns over production from major oil producers, including Saudi Arabia and Iraq.
During the past week, Brent gained more than 7% and WTI climbed over 8%, reaching their highest levels since July 24.
The inconclusive state of the U.S.-Israeli war on Iran has led to continued supply curtailments, with the United Arab Emirates halting all financial and economic transactions with Iran.8
IG analyst Tony Sycamore noted, “Both sides are dug in but lacking the luxury of time to play the waiting game, against a backdrop of crude prices grinding unerringly higher.”13
The conflict, which began on February 28, has resulted in thousands of casualties and significant disruptions to global oil and gas flows, particularly through the Strait of Hormuz, where shipping traffic has plummeted.9101112
Prior to the war, shipments through the Strait accounted for about one-fifth of global consumption, but have now fallen dramatically.
As tensions escalate, the potential for further economic retaliation against nations supporting Iran looms large, with U.S. President Donald Trump warning of “economic warfare and isolation on an unprecedented scale.”6
“Brent gained more than 7% and WTI climbed more than 8% over the previous five days, reaching their highest since July 24. The UAE halted all financial and economic transactions with Iran this week, and Trump threatened economic retaliation against nations supporting Iran.”
