Oil prices hold steady but remain on course for strong weekly gains as U.S.-Iran conflict escalates
Oil prices hold steady but remain on course for strong weekly gains as U.S.-Iran conflict escalates.
Oil prices traded modestly higher on Friday, with both major benchmarks set to record substantial weekly gains as escalating military action between the United States and Iran continued to raise concerns over potential supply disruptions in the Middle East.
At 04:10 ET (08:10 GMT), Brent crude futures climbed 0.2% to $84.38 a barrel, while U.S. West Texas Intermediate (WTI) crude advanced 0.6% to $78.71 a barrel.
Despite relatively subdued trading during the session, both contracts were on track to post weekly gains of more than 10%, reflecting the growing geopolitical risk premium that has emerged following the latest escalation in hostilities.
Tamas Varga, an analyst at PVM Oil Associates, noted that "there is a lack of urgency in oil circles at present."
He added: "There have been some quite significant developments without which the experience of the last few months would have crude prices harrying triple digits."
Early on Friday, Iran's military announced a new wave of attacks against U.S. facilities across the Middle East, including what it described as its first direct strike on targets in Syria.
The latest action followed a sixth consecutive night of U.S. military operations against Iranian targets, with Washington saying the strikes were aimed at reducing Iran's military capabilities.
Iran has repeatedly warned that shipping through the Strait of Hormuz could be affected by the conflict. Around one-fifth of global oil and fuel supplies pass through the strategic waterway.
Recent shipping data indicate that vessel movements through the strait have slowed once again after the United States reinstated a naval blockade around Iranian ports.
Market participants are now assessing the likelihood of prolonged supply disruptions while also considering whether higher production from other exporters could compensate for any loss of Iranian exports.
Diplomatic efforts also remain under close watch. Reports indicate that regional mediators, including Qatar, Egypt and Pakistan, continue to pursue negotiations despite the apparent collapse of the ceasefire agreement reached in June.
Separately, U.S. inventory data released this week pointed to tighter crude supplies.
The Energy Information Administration (EIA) reported that U.S. crude inventories fell by 1.7 million barrels during the week ending July 10 to 409.7 million barrels. Gasoline inventories also declined by 1.5 million barrels.
Earlier figures from the American Petroleum Institute (API) showed a smaller draw of approximately 564,000 barrels in U.S. crude stockpiles over the same period, below analysts' expectations.
Sinergia Empresarial continuará el seguimiento de esta información sobre oil prices hold steady but remain on course for strong weekly gains as U.S.-Iran conflict escalates y ampliará la cobertura conforme se confirmen nuevos elementos relevantes para el ecosistema empresarial.
