Oil prices climbed on Friday as US strikes on Iranian tankers and Tehran's pledge to establish a new restricted zone beyond the Strait of Hormuz intensified worries over prolonged disruption to energy shipments through the vital waterway.
Brent crude briefly advanced 0.8% to hover near $97 per barrel before paring some gains, while West Texas Intermediate (WTI) traded around $92. In thin trading conditions, European natural gas prices spiked as much as 4.2%.
The US stated that over the weekend, its military targeted three Iranian tankers—destroying one—in retaliation for ballistic missile attacks on American naval vessels. According to Press TV, Iran's senior security officials responded by announcing plans to declare a new restricted zone outside the Strait of Hormuz in the coming days, stretching from a US naval blockade line into parts of the Persian Gulf. Tehran also claimed to have struck three tankers, though this assertion has not been independently verified.
Following a period of relative calm, renewed US-Iran hostilities last week sent oil prices surging. With the six-month Middle East conflict and the Russia-Iran war weighing on markets, Brent crude has gained nearly 60% this year, with refined products like diesel seeing even sharper increases.
"The market has repriced a significant risk premium but hasn't yet factored in the true worst-case scenario," said Haris Khurshid, chief investment officer at Chicago-based Karobaar Capital LP. "If shipping conditions deteriorate further or actual crude supply faces more sustained disruptions, the $100-per-barrel level becomes much more justifiable."
US Energy Secretary Chris Wright affirmed that Washington will not reduce its naval presence in the region, including the maritime blockade aimed at curbing Iranian oil exports and ensuring safe passage for commercial vessels through the Strait of Hormuz.
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