Oil prices rose slightly on Friday after the United States threatened to keep its naval blockade on Iran in place indefinitely, reviving concerns over crude supply, even as prices had fallen in the previous session on expectations of weaker global demand.
The modest gain came after recent market volatility, with geopolitical tensions continuing to influence trading in the energy market.
Small moves in futures contracts
Brent crude futures rose 9 cents, or 0.1%, to $87.16 a barrel, while US West Texas Intermediate crude futures added 4 cents to $81.29 a barrel.
Despite the small increase, both contracts had fallen more than 2% in the previous session, giving up part of the gains they had built over six straight sessions for Brent and five for WTI.
Weekly gains still on track
Even after the pullback, both benchmarks are still headed for weekly gains of about 4%, reflecting continued caution in the market over the outlook for global oil supply.
Traders remain focused on geopolitical developments, especially tensions involving Iran and the Strait of Hormuz, which remains one of the world’s most sensitive energy transit points.
Supply fears support prices
Reports said Washington’s threat to keep the naval blockade on Iran indefinitely helped renew fears that crude supply could be disrupted, giving oil prices some support in Asian trading.
The region remains highly important for energy markets because of its direct role in oil exports and shipping routes.
Conclusion:
The slight rise in oil prices shows how global markets continue to react to geopolitical risks and supply concerns, even as worries about weaker demand persist. For now, developments involving Iran and the Middle East remain a key driver of oil trading.
