Oil Rebounds on Iran Tensions

Crude oil extended its gains to above $82 per barrel on Friday, reaching its highest level in a month, after Kuwait said Iran had attacked a power and water desalination plant. Meanwhile, reports indicated that Iran launched strikes against US targets in Bahrain, Jordan, Kuwait, Oman, Qatar and Syria in retaliation for Washington's latest round of military attacks. The US Central Command said it had completed its sixth consecutive night of strikes against Iran, targeting dozens of military sites. Also, reports indicated that Iran had instructed Houthi forces to prepare to disrupt shipping through the Red Sea if the US targets Iranian power infrastructure. Meanwhile, commercial traffic through the Strait of Hormuz has remained largely limited. Oil prices have risen more than 14% this week as hostilities intensified, raising fears of a broader regional conflict. Early this week, the US reinstated a naval blockade targeting Iranian ports near the Strait of Hormuz.

Crude oil traded above $80 per barrel on Friday, returning to one-month highs after a modest pullback in the previous session, as investors continued to assess the escalating conflict between the US and Iran. Overnight, US Central Command said it had completed its sixth consecutive night of strikes against Iran, targeting dozens of military sites, including logistics infrastructure and maritime assets. Iran has been responding by launching attacks on US bases in Kuwait, Jordan and Bahrain while reports indicated that Iran had instructed Yemen's Houthi forces to prepare to disrupt shipping through the Red Sea if the US targets Iranian power infrastructure. Meanwhile, commercial traffic through the Strait of Hormuz has remained largely limited. Oil prices have risen more than 10% this week as hostilities intensified, raising fears of a broader regional conflict. Early this week, the US reinstated a naval blockade targeting Iranian ports near the Strait of Hormuz.

Crude oil traded above $79 per barrel on Friday and was on track to gain more than 10% for the week, as escalating attacks between the US and Iran intensified concerns over supply disruptions in the Middle East. The US launched multiple strikes against Iran this week, reportedly hitting an oil tanker near the country's main export terminal for the first time since reimposing a blockade on Iranian ports. President Donald Trump also warned that the US could target Iran’s infrastructure next week unless diplomatic efforts produce a breakthrough. Meanwhile, Tehran reportedly instructed Yemen’s Houthi rebels to close the Bab el-Mandeb Strait, a critical route for Saudi Arabia’s oil exports through the Red Sea, if Iranian power infrastructure comes under attack. Shipping traffic through the Strait of Hormuz has fallen sharply since the latest escalation, although some vessels continue to transit the waterway.