Oil prices are heading for a second straight weekly gain as the unresolved U.S.-Iran conflict continues to restrict crude flows and keep traders on alert over a wider disruption to global energy supplies.
Brent crude was trading above $93 a barrel on Friday, putting it on track for a gain of more than 5% this week. The benchmark briefly moved above $94 during the session, after rising 2.4% on Thursday.
The rally reflects growing concern over the Strait of Hormuz, one of the world’s most important oil shipping routes. With the conflict limiting traffic through the waterway, traders are increasingly pricing in the risk that disruptions could last longer than initially expected.
The United States is also preparing to tighten economic pressure on Iran. President Donald Trump has described the next phase of the campaign as an “economic D-Day,” with Washington expected to announce measures aimed at restricting Iran’s access to international financial and commercial networks.
The measures could further squeeze Iranian oil exports, while any retaliation by Tehran could deepen the disruption around Hormuz.
The pressure on energy markets is not coming from the Middle East alone. Ukrainian attacks on Russian energy infrastructure have reduced refining activity and contributed to fuel shortages in parts of Russia, adding another source of strain to global fuel markets.
The combination of disrupted crude flows and reduced refining capacity is raising concerns about the availability of diesel, gasoline and other refined products, even as traders continue to watch how quickly diplomatic efforts between Washington and Tehran can resume.
For now, the oil market remains focused on one question: how long will the supply disruptions last?
Until there is clearer progress on the conflict and shipping through Hormuz begins to normalise, the risk of further price pressure is likely to remain.
