Crude heads for biggest weekly gain in months amid intensifying Middle East crisis
Crude oil prices are surging toward their largest weekly gain in three months due to escalating military conflict between the United States and Iran. The renewed hostilities, which include strikes near Tehran and threats to the Strait of Hormuz, have heightened investor fears regarding global energy supply disruptions.
Why it matters
The instability in a critical global shipping chokepoint threatens to drive up energy costs worldwide and destabilize global markets.
Escalating military tensions between the United States and Iran continued to lift oil prices on Friday, putting crude benchmarks on track for their biggest weekly gains in three months as markets assessed the risk of further supply disruptions in the Middle East.Around 7 am IST, Brent crude was trading at $85.34 a barrel, up $1.11, or 1.32%, while WTI crude rose $1.13, or 1.43%, to $80.08 a barrel.The latest rally followed a fresh wave of US strikes on Iran. US Central Command on Thursday said that the attacks were launched to "further degrade Iranian military capabilities". As tensions intensify, Brent and US crude are on course to end the week more than 11% higher, marking their strongest weekly performance since April, Reuters reported.The attacks marked another escalation in a conflict that has intensified over recent days.
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