Oil heads for biggest weekly gain since July as Middle East tensions flare
Oil prices edged higher on Friday and were headed for their biggest weekly gain since mid-July as escalating tensions between the US and Iran raised concerns over disruptions to crude supplies from the Middle East.Brent crude futures rose 15 cents, or 0.2%, to $95.67 a barrel at 0100 GMT, while US West Texas Intermediate crude gained 26 cents, or 0.3%, to $91.56.Brent was up 7.1% for the week, while WTI had gained 9.8%, putting both benchmarks on course for their strongest weekly advances since the week ended July 20.The latest gains came after US attacks this week killed and wounded dozens, including Iranian civilians, in the fiercest clashes between Washington and Tehran since July. The conflict, which began with US-Israeli strikes at the end of February, has now entered its seventh month.Concerns over the wider impact on energy infrastructure have also grown. Israeli Defence Minister Israel Katz renewed warnings that Israel would “cripple” Iran’s military and civilian infrastructure, including energy facilities.US Vice President JD Vance said on Thursday that Washington would not hold talks with Iran unless Tehran stops attacking commercial shipping in the Strait of Hormuz, a key global oil transit route.Iran has also expanded its list of vessels it considers non-compliant, warning that they could face fines, confiscation or detention if they attempt to transit the strait. Iraqi vessels remain among the few ships Tehran has cleared to pass through Hormuz.Iraq, meanwhile, increased oil exports to around 2.34 million barrels per day in August from about 1.35 million bpd in July, according to two Iraqi energy officials. September exports are also expected to rise as heavy discounts and Iranian approvals for Iraqi tankers encourage buyers.Capping oil’s gains, Russian President Vladimir Putin said there was still a path to a deal to end the war in Ukraine, adding that both the US and China were prepared to support a peace settlement.