Oil prices posted weekly gains on Friday as escalating tension between the United States and Iran deepened concerns over supply risks from the Middle East.
Brent crude rose $0.79 to $96.27 a barrel, while the US benchmark West Texas Intermediate (WTI) gained 0.21% to $91.49. Brent is the international benchmark for oil prices, while WTI is the main US benchmark, and both are widely used gauges of global crude markets.
The weekly moves were sharper still. Brent climbed 6.5% over the week, its largest weekly increase since August 17, while WTI rose 8.4%, its strongest weekly performance since July 13.
Fiercest Clashes Since July
US attacks this week killed and injured dozens of people, including Iranian civilians, marking the fiercest clashes between the two countries since July. The war is now in its seventh month, having begun with US and Israeli strikes in late February.
Israel's Defense Minister, Israel Katz, repeated warnings that Israel would paralyze Iran's military and political infrastructure, including its energy facilities.
Three senior Iranian officials said a US campaign to weaken Iran's economy, by blocking the country's oil exports and closing off routes used to evade sanctions, was becoming increasingly difficult to counter.
Shipping Through the Strait of Hormuz
Four cargo vessels crossed the Strait of Hormuz on Thursday, compared with nine the day before and well below the average of about 15 ships over a 10-day period, according to preliminary shipping data.
The strait, a narrow channel between Iran and Oman, is one of the world's most important corridors for seaborne oil, carrying a large share of global crude shipments.
Two Iraqi energy officials said on Wednesday that Iraq raised its oil exports in August to about 2.34 million barrels a day, up from roughly 1.35 million barrels a day in July.
Forecasts Revised Higher
Analysts turned more optimistic about the trajectory of oil prices as concerns over the Strait of Hormuz intensified.
Citi raised its forecast for the average price of Brent crude in the third quarter to $86 a barrel, up from $80, saying the reopening of the strait was taking longer than previously expected.
Fears of supply disruption from the renewed US-Iran hostilities, along with Ukrainian attacks on Russian refineries, pushed average US diesel prices to record levels.
