Oil prices climbed further on Friday, with Brent crude approaching $110 per barrel as escalating attacks on key Middle East shipping routes intensified fears of a prolonged disruption to global supplies.
Brent crude futures rose to as high as $109.97 a barrel, their highest level since May, after gaining more than 6% on Thursday. U.S. West Texas Intermediate crude also remained above $100 per barrel.
Both benchmarks were trading nearly 13% higher for the week, their steepest weekly increase since July.
The latest surge comes as oil flows remain restricted through the Strait of Hormuz amid continued fighting between the United States and Iran and intensified attacks on tankers in the region.
Concerns have also spread to the Red Sea after Iran-aligned Houthis seized Yemen’s port of Mocha, raising fears of further disruptions to another key shipping route used for energy exports.
Iran said it had attacked 10 ships near the Strait of Hormuz following U.S. strikes on five Iranian oil tankers, while Iran’s Islamic Revolutionary Guard Corps warned that it would escalate its response to further attacks.
The developments have increased concerns among traders that disruptions to Middle East oil supplies could persist rather than ease in the near term.
The surge in crude prices is also adding to global inflation concerns, with higher energy costs putting pressure on financial markets and raising expectations that central banks may need to maintain tighter monetary policy. (Newswire)
