Crude oil traded above $80 per barrel on Friday, revisiting one-month highs after a modest pullback in the previous session, as investors continued to weigh the escalating conflict between the US and Iran. Overnight, US Central Command reported it had carried out a sixth consecutive night of strikes on Iran, hitting dozens of military targets, including logistics infrastructure and maritime assets.
Iran has responded with attacks on US bases in Kuwait, Jordan and Bahrain, while reports indicated that Tehran has instructed Yemen’s Houthi forces to prepare to disrupt Red Sea shipping if the US strikes Iranian power infrastructure. At the same time, commercial traffic through the Strait of Hormuz has remained significantly constrained.
Oil prices have climbed more than 10% this week amid mounting hostilities, stoking fears of a wider regional conflict. Earlier in the week, the US also reimposed a naval blockade on Iranian ports near the Strait of Hormuz.
