Brent crude ended the week at its highest level since April as escalating attacks on Saudi Arabia deepened supply concerns already heightened by the U.S.-Iran conflict.
The global benchmark Brent settled just below $117 a barrel on Friday, gaining more than 6% over the week, while WTI closed above $103.
Iran-backed Houthi forces claimed responsibility for recent attacks on Saudi Arabia's Red Sea port of Yanbu, as well as deadly strikes on an oil field and an airport in the kingdom.
"Concern about weekend escalation is adding fuel to the fire," said Rebecca Babin, a senior energy trader at CIBC Private Wealth Group. She added that traders remain nervous "even as geopolitical analysts downplay that possibility."
An escalation could widen hostilities around the Strait of Hormuz. In addition, because markets halt trading over the weekend, oil traders are also unwilling to hold short positions ahead of the weekend.
Several bullish dynamics in the options market are also spilling over into the futures market.
U.S. President Donald Trump told reporters at the White House on Thursday that the United States had "crushed" Iran and threatened to go "a step further," without elaborating.
Reports this week said the United States and Israel have drawn up plans to strike Iran again after next month's U.S. midterm elections.
WTI crude for December delivery rose 3.8% to settle at $103.27 a barrel, while December Brent gained 3.1% to close at $116.72 a barrel.
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