Crude Oil Set for 10% Weekly Gain

Crude oil slipped toward $90 per barrel on Friday but remained up more than 10% for the week, as traders continued to assess mounting geopolitical risks to global energy supplies. The US launched a 13th straight day of strikes on Iran, with both sides ruling out near-term talks. President Trump also threatened "major military punishment" against Iran and the Houthis over any further attacks on Red Sea shipping and said he was considering a "massive attack" on Iran. His remarks followed attacks by Iran-backed Houthi militants on two Saudi oil tankers in the Red Sea, a key alternative export route for Saudi Arabia as fighting continued to disrupt traffic through the Strait of Hormuz. Asian buyers have begun discussing rerouting Saudi crude shipments through the Suez Canal and around Africa. Adding to supply constraints, the Caspian Pipeline Consortium suspended crude loadings at its Black Sea terminal after tanker attacks, disrupting around 80% of Kazakhstan's oil exports.

Crude oil traded above $91 per barrel on Friday and was on track to gain more than 12% for the week, as escalating Middle East tensions heightened fears of deeper global supply disruptions. The US launched a 13th straight day of strikes on Iran, with both sides ruling out near-term talks. President Trump also threatened "major military punishment" against Iran and the Houthis over any further attacks on Red Sea shipping and said he was considering a "massive attack" on Iran. His remarks followed attacks by Iran-backed Houthi militants on two Saudi oil tankers in the Red Sea, a key alternative export route for Saudi Arabia as fighting continued to disrupt traffic through the Strait of Hormuz. Asian buyers have begun discussing rerouting Saudi crude shipments through the Suez Canal and around Africa. Adding to supply constraints, the Caspian Pipeline Consortium suspended crude loadings at its Black Sea terminal after tanker attacks, disrupting around 80% of Kazakhstan's oil exports.

Crude oil surged more than 6% to trade above $92 per barrel on Thursday, extending gains for a fifth consecutive session and reaching its highest level since early June as escalating hostilities in the Middle East heightened concerns over global supply disruptions. US President Trump warned that the US would hold Iran responsible for any future Houthi attacks on commercial shipping in the Red Sea, threatening Tehran and the Yemen-based militants with "major military punishment." He also said he was "considering a massive attack" against Iran. The comments followed Houthi attacks on two Saudi oil tankers in the Red Sea, which the group said were intended to enforce a newly announced blockade of Saudi ports. Oil prices have now climbed more than 30% from the pre-conflict levels seen earlier this month. Adding to supply concerns, Kazakhstan's decision to suspend crude exports through the Caspian Pipeline Consortium terminal following drone attacks further tightened the market outlook.