Oil Climbs More Than US$1 as Tanker Attacks and Stalled Peace Talks Drive Gains
Crude oil prices rose by more than US$1 per barrel on Friday after fresh tanker attacks and a lack of progress in peace efforts between the Trump administration and Iran. The renewed geopolitical tension pushed risk premiums higher in the energy market heading into the weekend.
Brent crude futures settled at US$88.52 per barrel, up US$1.45 or 1.67%. Meanwhile, US West Texas Intermediate (WTI) crude finished at US$82.40 per barrel, gaining US$1.15 or 1.42%. On a weekly basis, Brent was on track to rise around 6%, while WTI gained about 5.4%.
Market participants turned more cautious after new attacks on tankers in the region and continued uncertainty surrounding ceasefire negotiations. The lack of a breakthrough keeps the risk of Middle East supply disruptions elevated, especially as shipping activity through the Strait of Hormuz remains constrained.
The Strait of Hormuz remains a key focus because roughly one-fifth of global oil supply can pass through the strategic waterway. If vessel traffic remains restricted for an extended period, pressure on crude oil and refined-product markets could intensify further.
Higher energy prices are also beginning to create more direct pressure on consumers. Although crude oil is trading in the US$80-per-barrel range, refined products such as diesel and gasoline remain significantly more expensive, increasing transportation costs and potentially adding to inflationary pressures.(mrv)
Source : Newsmaker.id
