Oil Prices Near Six-Week Highs as U.S.-Iran Fighting Disrupts Strait of Hormuz Shipping
TLDR
- Brent crude on track for a 7% weekly gain; WTI headed for a 10% rise, near six-week highs
- U.S. and Iran exchanged military strikes this week, with attacks hitting Kuwait, Bahrain, and Jordan
- Strait of Hormuz vessel traffic fell to just 4 ships Thursday, far below the 10-day average of 15
- U.S. diesel prices hit a record high, pushing inflation and bond yields higher
- Citi raised its Q3 Brent price forecast to $86 a barrel; ANZ sees short-term prices at $95
Oil prices pulled back slightly on Friday but stayed on course for one of their best weekly performances in months. The ongoing military conflict between the United States and Iran is keeping global energy markets on edge.
Brent crude was trading around $95.15 a barrel on Friday morning, down about 0.4% on the day. West Texas Intermediate fell 0.6% to $90.77. Despite the daily dip, Brent was up 6.6% for the week and WTI was up 8.8%, its best weekly gain since July 13.
The conflict between the U.S. and Iran is now in its seventh month. This week saw some of the fiercest exchanges since July, with U.S. strikes hitting targets near the Strait of Hormuz. Iran responded with missile and drone attacks on U.S. and allied positions in Kuwait, Bahrain, and Jordan.
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