Crude oil hovered near $84 per barrel on Friday and was set to log a monthly gain of more than 20%, as renewed hostilities between the US and Iran raised the risk of further disruptions to Middle Eastern energy supplies. The US military carried out new strikes on Iranian targets in response to Tehran’s attacks on US assets across the region, undermining prospects for any near-term diplomatic resolution.
Despite these tensions, tanker traffic through the Strait of Hormuz picked up after a recent slowdown, allowing millions of barrels of crude to transit the key shipping chokepoint. In the Red Sea, Saudi Arabia hosted representatives from 43 countries for talks on forming a maritime coalition to protect trade routes, following a blockade last week by Iran-backed Houthi militants.
Elsewhere, traders remained cautious about potential supply disruptions in the Black Sea, after loadings at an export terminal critical to Kazakhstan’s crude shipments were once again suspended this week in the wake of fresh attacks on oil tankers.
