Brent crude oil price fell below $85 a barrel today amid reports of further hike in oil prices. Oil prices moved higher early Friday and remained on track for their biggest weekly gain since April. Growing tensions in the Middle East and renewed disruptions in the Strait of Hormuz boosted crude prices to their highest level in more than a month. During Asian trading, Brent crude rose 1% to $84.30 per barrel.
Meanwhile, US benchmark West Texas Intermediate gained 1.2% to $79.88 per barrel. Both benchmarks were set to post weekly gains of about 12%. Earlier this week, Brent crude climbed above $86 per barrel as the conflict intensified. Market concerns also increased after Iran reportedly targeted two UAE-managed oil supertankers transiting the Strait of Hormuz. Consequently, traders feared further disruptions to global energy supplies.
Military action raises concerns over global oil supply
Meanwhile, the United States launched another round of military strikes on Iran for the sixth consecutive night. According to US Central Command, the operation targeted coastal surveillance sites, air defence systems, military logistics facilities, and maritime infrastructure.
Furthermore, US forces struck and disabled an Iran-linked sanctioned oil tanker near Kharg Island, a key Iranian oil export terminal. Officials said the operation aimed to weaken Iran’s military capabilities and respond to recent attacks on commercial shipping. As a result, traffic through the Strait of Hormuz has slowed significantly, increasing concerns about global crude supplies.
In addition, reports indicated that Yemen’s Iran-aligned Houthi movement was preparing for possible attacks in the Red Sea if instructed by Iran’s Islamic Revolutionary Guard Corps. These developments have further strengthened expectations of continued volatility in global oil markets.
