Oil Heads for Weekly Gain

Crude oil rose toward $80 per barrel on Friday and was on track to gain about 12% 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.

Crude oil swung between gains and losses around the $80 level on Thursday, remaining at one-month highs as escalating hostilities in the Middle East continued to support prices and weigh on investor sentiment. Reports showed that Iranian government had asked Houthis to stand ready to close the Red Sea oil route should US forces carry out President Trump’s threat to target the country’s infrastructure next week if a diplomatic breakthrough is not achieved. The US intensified its strikes against Iran, reportedly targeting an oil tanker near the country's main export terminal for the first time since reimposing a blockade on the country's ports. In response, Iran launched attacks on US bases in Kuwait and Jordan. According to Reuters, tanker traffic through the Strait has fallen to two-month lows as the conflict has intensified. Only seven vessels transited the waterway on Wednesday, the first full day after the US reimposed its naval blockade on Iran, down from 13 the previous day.

Crude oil traded below $80 on Thursday but remained near one-month highs as escalating hostilities in the Middle East continued to support prices and weigh on investor sentiment. The US intensified its strikes against Iran, reportedly targeting an oil tanker near the country's main export terminal for the first time since reimposing a blockade on the country's ports. In response, Iran launched attacks on US bases in Kuwait and Jordan and threatened to disrupt additional regional energy exports, describing the conflict as an "existential war" with the US. According to Reuters, crude oil loading was suspended at all Iraqi export terminals on Thursday after a drone struck an oil tanker at the Basra terminal. Reuters also reported that tanker traffic through the Strait has fallen to two-month lows as the conflict has intensified. Only seven vessels transited the waterway on Wednesday, the first full day after the US reimposed its naval blockade on Iran, down from 13 the previous day.