Global crude oil prices are on course for their strongest weekly rally since April after renewed military escalation between the United States and Iran intensified concerns over disruptions to Middle East oil supplies, pushing both Brent crude and West Texas Intermediate (WTI) to their highest levels in more than a month.
As of 2:00 p.m. WAT on Friday, Brent crude traded at $86.75 per barrel, up $2.52 or 2.99%, while WTI crude rose to $81.48 per barrel, gaining $2.53 or 3.20%. The gains extend a week-long rally that has lifted both benchmarks by more than 10%, with market participants pricing in heightened geopolitical risks across key global energy supply routes.
The latest advance follows another night of U.S. military operations against Iran, marking the sixth consecutive day of strikes targeting Iranian military infrastructure. The campaign comes in response to recent Iranian attacks on commercial shipping and military installations across the Gulf region.
According to the U.S. Central Command (CENTCOM), American forces struck dozens of Iranian military assets overnight, including coastal surveillance systems, air defence installations, logistics infrastructure and maritime capabilities.
CENTCOM said the operations were carried out under presidential directive to further weaken Iran's military capacity and respond to attacks on commercial shipping.
The renewed military campaign comes after Washington reinstated a naval blockade targeting Iranian oil exports through the Gulf of Oman earlier this week. On Thursday, U.S. forces also struck and disabled an Iran-linked sanctioned oil tanker near Kharg Island, Iran's principal crude export terminal, signalling an expansion of enforcement efforts against Tehran's energy exports.
The escalation has effectively stalled the recovery in tanker movements through the Strait of Hormuz, one of the world's most important oil transit routes. Vessel traffic, which had started to improve following the U.S.-Iran memorandum of understanding signed in June, has again slowed sharply as shipping companies reassess security risks in the region.
The disruption follows Iran's reported attacks earlier this week on two UAE-managed Very Large Crude Carriers (VLCCs) transiting the southern shipping lane of the Strait of Hormuz near Omani waters, an incident that further heightened concerns over the safety of commercial navigation through the corridor.
Beyond the Persian Gulf, additional risks are emerging in the Red Sea. Reports indicate that Yemen's Iran-backed Houthi movement is awaiting instructions from Iran's Islamic Revolutionary Guard Corps (IRGC) to potentially disrupt shipping through the Bab el-Mandeb Strait, another critical maritime route linking the Red Sea to global markets.
The prospect of simultaneous disruptions at both Hormuz and Bab el-Mandeb has reinforced fears of broader supply interruptions, prompting traders to build a higher geopolitical risk premium into crude prices.
Market analysts say the latest rally reflects growing concerns that prolonged military confrontation could significantly tighten global oil supplies, even as underlying demand remains firm across major consuming economies.
The conflict has also renewed uncertainty over the future of the fragile ceasefire arrangements reached earlier between Washington and Tehran. With commercial shipping through the Strait of Hormuz remaining limited and military operations continuing on both sides, energy markets are increasingly focused on the potential for further disruptions to global crude exports.
Industry observers note that while strategic petroleum reserves and alternative export routes could cushion some of the immediate impact, sustained instability across the Gulf would likely continue to support higher crude prices and increase volatility across global energy markets.