Oil Prices on Track for Strong Weekly Gains Amid Middle East Tensions
Oil prices remained poised for significant weekly gains despite a slight decline on Friday, driven by escalating geopolitical tensions in the Middle East. Investors are closely watching potential disruptions to global energy supplies following attacks on Saudi oil tankers attributed to Iran-backed Houthi forces. Both Brent and U.S. West Texas Intermediate (WTI) crude were set to record substantial weekly advances after surging earlier in the week. Market sentiment is being supported by fears of supply chain disruption, particularly around key shipping routes like the Bab el-Mandeb Strait and the Strait of Hormuz. Analysts warn that prolonged disruptions could push Brent prices higher. Additional uncertainty comes from Russia's military strikes on Ukrainian ports and Kazakhstan’s temporary reduction in oil output due to suspected drone attacks. U.S. President Donald Trump has warned of potential retaliation against Iran, while reports suggest Iran is urging the Houthis to block access to critical straits if U.S. actions continue.