Oil Prices Post Weekly Gains as Middle East Supply Risks Keep Markets on Edge

Oil prices ended lower on Friday as easing concerns over immediate supply disruptions helped push crude off midweek highs, but renewed tensions in the Middle East kept markets supported and delivered strong weekly gains.

Brent crude futures settled down 29 cents, or 0.38%, at $76.01 per barrel, while U.S. West Texas Intermediate (WTI) crude fell 67 cents, or 0.93%, to close at $71.41 per barrel.

Latest Oil Prices:

WTI Crude • 71.44 -0.64 -0.89%

Brent Crude • 76.01 -0.29 -0.38%

Murban Crude • 70.76 -0.61 -0.85%

WTI Midland • 10 mins 71.48 -0.76 -1.05%

Opec Basket • 76.25 -1.71 -2.19%

Indian Basket • 74.37 +6.16 +9.03%

Natural Gas • 2.934 -0.078 -2.59%

Gasoline • 2.984 -0.055 -1.81%

Heating Oil • 3.555 -0.017 -0.48%

Despite Friday's decline, both benchmarks recorded significant weekly increases. Brent gained approximately 6% over the week, while U.S. crude advanced nearly 5%, reflecting continued investor concern over potential disruptions to global energy flows.

Market analysts said prices retreated after reaching higher levels earlier in the week, but a substantial risk premium remained due to uncertainty surrounding shipping activity through the Strait of Hormuz, one of the world's most important energy transit routes.

"Prices have pulled back from midweek levels, but a significant risk premium remains as traffic through the Strait of Hormuz remains severely restricted, with no clear timeline for a full return to normal operations," said Vandana Hari, founder of oil market analysis firm Vanda Insights.

Hari added that expectations of renewed diplomatic engagement between the United States and Iran have limited further price increases, as investors watch for signs of a potential resolution.

Oil markets remained sensitive after Iran's armed forces launched strikes against U.S. military infrastructure in Gulf countries following American attacks on coastal areas in southern and eastern Iran. The escalation placed additional pressure on a ceasefire agreement reached three weeks earlier.

Iranian media also reported multiple explosions in southern regions, including Bushehr, home to one of the country's nuclear facilities.

However, prices eased after reports indicated that Qatari mediators had traveled to Iran for discussions with officials aimed at reducing tensions and creating conditions for broader negotiations.

The International Energy Agency (IEA) warned that the latest escalation between Washington and Tehran could undermine expectations of a significant oil surplus next year.

Before the conflict, the Strait of Hormuz handled around 20% of global daily oil and gas supplies, making any disruption to shipping through the waterway a major concern for energy markets worldwide.

UBS analyst Giovanni Staunovo said the absence of additional U.S. strikes against Iran overnight may have contributed to downward pressure on prices, although reduced flows through the Strait of Hormuz continue to limit further declines.

Vessel-tracking data showed that some liquefied natural gas (LNG) carriers linked to Japan successfully crossed the Strait in recent days, but overall daily shipping activity remains significantly slower than normal.

With geopolitical risks unresolved, traders continue to monitor developments in the Gulf region, diplomatic efforts, and shipping patterns for signals that could determine the next direction of oil prices.