Play store
Global crude oil prices rose again on Friday as renewed military tensions involving Iran fueled concerns over potential disruptions to global oil supplies.
The increase came after the United States threatened to maintain its naval blockade of Iran indefinitely, raising fresh concerns over the security of oil shipments and the broader supply outlook.
Brent crude futures rose 9 cents, or 0.1%, to $87.16 a barrel at 1:30am GMT on Friday, according to market data cited in the report.
US West Texas Intermediate (WTI) crude also edged up 4 cents to $81.29 a barrel.
Both benchmarks had fallen more than 2% on Thursday amid concerns over weakening global oil demand. Despite the previous day’s decline, Brent is on track for a weekly gain of around 4%, while WTI is also set to rise by roughly 4%.
Meanwhile, concerns are growing over the Strait of Hormuz, a crucial global oil shipping route. Hossein Taeb, head of Iran’s Basij paramilitary force, was quoted as saying that the strategic waterway remains under the Islamic Republic’s management and control.
A prolonged conflict or disruption in the Strait of Hormuz could significantly affect global oil supplies and put further upward pressure on prices.
However, weaker demand forecasts could limit the rise in oil prices. Both the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) lowered their forecasts for global oil demand growth this week.
US crude inventories also recorded their largest weekly increase in more than three and a half years, adding another factor that could weigh on oil prices.