Crude oil traded around $91.20 a barrel on Friday, gaining more than 9% for the week and posting its strongest weekly advance since mid-July, as the war in the Middle East dragged on with little sign of a diplomatic breakthrough. Tensions escalated after Iran and the United States exchanged missile strikes, and Israel’s defense minister threatened “crippling” attacks on Iran’s infrastructure, explicitly including energy facilities.
Adding further upward pressure to prices, US Vice President JD Vance said Washington has no plans to pursue peace talks with Tehran until Iran halts attacks on ships in the Strait of Hormuz, while Iran has signaled it intends to maintain a hard-line stance in response to recent US strikes. The European Union has formally joined the US-led sanctions campaign against Iran, and South Korea said it is considering taking on a military role.
Still, the rally could lose steam if crude shipments through the Strait of Hormuz increase. Recent reports on Iraqi oil exports show average shipments of about 2.35 million barrels per day in August, largely routed through southern export terminals.
