Oil Prices Rise as Middle East Tensions Fuel Supply Concerns and Strait of Hormuz Risks

Global oil prices moved higher on Friday, putting crude markets on track for weekly gains as renewed tensions between the United States and Iran raised concerns over possible disruptions to energy supplies from the Middle East.

Brent crude futures increased by 19 cents, or 0.25 percent, reaching $76.49 per barrel, while US West Texas Intermediate (WTI) crude also gained 19 cents, or 0.26 percent, trading at $72.27 per barrel.

For the week, Brent crude was set to rise by around 6 percent, while WTI was heading toward a gain of approximately 5 percent as traders continued monitoring developments in the region.

Vandana Hari, founder of oil market analysis firm Vanda Insights, said that although prices had moved down from their midweek highs, markets were still carrying a significant risk premium due to uncertainty surrounding shipping activity through the Strait of Hormuz.

She said oil market confidence that the United States and Iran could return to diplomacy was limiting further price increases, but concerns remained over when normal shipping operations through the strategic waterway would resume.

The latest market reaction followed renewed military exchanges between Washington and Tehran. Iranian armed forces launched attacks on US military infrastructure in Gulf countries after American strikes on Iranian locations, adding further pressure on an already fragile ceasefire.

Iranian media also reported explosions in parts of southern Iran, including areas near Bushehr, home to one of Iran’s nuclear facilities.

The escalation came as Iran held funeral ceremonies for martyred leader Ayatollah Ali Khamenei, whose death occurred on the first day of the conflict on February 28.

Strait of Hormuz Remains at Center of Global Energy Concerns

The Strait of Hormuz has become a major focus for energy markets as the key shipping route handles around 20 percent of the world’s daily oil and gas supplies.

Shipping data indicated that tanker traffic through the strait slowed significantly as vessel operators assessed security risks following renewed military developments in the region.

The uncertainty surrounding maritime movement has increased fears of potential supply disruptions, with energy traders closely watching whether tensions could further affect one of the world’s most important oil transit routes.

Despite the escalation, US President Donald Trump said he did not expect the renewed clashes to develop into a wider war, stating that any further confrontation would be resolved quickly.

Daniel Hynes, senior commodity strategist at ANZ Bank, said markets received some reassurance from the US administration’s decision not to target Iranian energy infrastructure.

He added that comments from President Trump suggesting that a return to a full-scale conflict was unlikely had also helped reduce some pressure on oil markets.

As geopolitical uncertainty continues, energy markets remain highly sensitive to developments between the United States and Iran, with investors watching closely for any signs of escalation or diplomatic progress.