Brent Falls on Friday, Heads for Weekly Gain

Brent crude oil futures fell to $107 per barrel on Friday amid volatility, after US Treasury Secretary Scott Bessent indicated Washington may soon lift sanctions on Iranian crude held on tankers to help ease price pressures following Iran’s closure of the Strait of Hormuz. Israeli Prime Minister Benjamin Netanyahu said Israel is supporting US efforts to reopen the key waterway. Brent is still on track for a weekly gain of around 4% as the Middle East conflict continues, with the Strait largely closed, ongoing regional strikes, and analysts warning the crisis could worsen. Iran continued attacks on Gulf neighbors despite Netanyahu’s statement that Israel would avoid hitting Iranian energy infrastructure, while President Trump sought to calm concerns over the impact on oil and gas supplies.

Brent crude oil futures climbed back toward $110 per barrel on Friday, the highest since mid 2022, as markets remained highly sensitive to escalating tensions in the Middle East. Iran continued attacks across the region despite signals from Israel that it would avoid targeting energy infrastructure, while both sides exchanged fresh strikes, including in Tehran. Brent is heading for a weekly gain of more than 7%, with the Strait of Hormuz largely closed and disruptions deepening as the conflict enters its third week. Supply risks intensified after refinery outages in Kuwait and missile interceptions in Saudi Arabia. Efforts to ease prices include potential US moves to lift sanctions on Iranian oil and release reserves, though volatility remains elevated.

Brent crude futures fell toward $108 per barrel on Friday after surging above $113 in the previous session, as easing supply concerns helped calm markets. Leaders from the UK, France, Germany, Italy, the Netherlands, Japan, and Canada signaled their willingness to support efforts to ensure safe passage through the Strait of Hormuz. US President Donald Trump also said Washington is not considering deploying ground troops in the region, while Treasury Secretary Scott Bessent suggested Iran’s regime could face internal collapse and indicated the US is exploring lifting sanctions on Iranian oil. Israeli Prime Minister Benjamin Netanyahu also stated that Israel would refrain from further attacks on Iranian energy infrastructure. Despite the pullback, WTI futures remain up about 40% since the start of the conflict, as disruptions have effectively shut the Strait of Hormuz and forced major regional producers to sharply reduce output.