Brent Heads for Sharp Weekly Rise

Brent crude climbed toward $109 per barrel on Friday and was on track to gain about 13% for the week, marking its biggest weekly increase since mid-July as the escalating conflict between the US and Iran fueled concerns over prolonged disruptions to global energy supplies. Top US officials reportedly warned President Donald Trump that the war could continue through the remainder of his term, which ends in January 2029. Meanwhile, Iranian leaders are reportedly determined to continue fighting despite mounting economic costs, viewing the conflict as an existential threat. They also claim that Tehran has managed to rebuild its missile capabilities and could intensify attacks on US and Gulf assets if Washington escalates its own strikes. Fighting has intensified over the past two weeks, with the US targeting Iranian oil tankers while Iran launched missiles at US warships and tankers in the Persian Gulf, as well as American assets in neighboring countries.

Brent crude past $108 a barrel on Thursday, its highest level since May 19th, as escalating tensions in the Middle East raised fears of prolonged disruptions to global energy supplies. Top White House advisers reportedly discussed with President Donald Trump the possibility that the Iran war could drag on past Inauguration Day in January 2029. Iran’s Houthi allies in Yemen struck several energy facilities in Saudi Arabia this week, raising concerns that the conflict was broadening. Saudi Arabia’s crude oil production fell sharply in August 2026, dropping by around 1.9 million barrels a day. Iran reported strikes on US warships and tankers in the Persian Gulf, while the US said it had hit 10 Iranian tankers. Adding to upward pressure on prices, oil tanker rates have jumped to record highs, while US crude inventories fell by 300,000 barrels in the week ended September 4th. In contrast, the EIA raised its forecast for US crude oil production in 2027 to 14.3 million barrels per day.

Brent Oil increased 5.05% to 106.317 USD/Bbl