Oil prices were on track for strong weekly gains on Friday, even after the United States attempted to ease supply pressures by issuing a 30-day waiver allowing countries to purchase Russian oil and petroleum products currently stranded at sea.
The move was intended to stabilize global energy markets that have been shaken by the U.S.-Israeli conflict with Iran, but analysts say the measure has done little to resolve the broader supply concerns.
Oil Prices Climb as Supply Fears Persist
At 07:30 GMT, Brent crude futures for May delivery rose $1.02 (1%) to $101.48 per barrel, putting the benchmark on track for a weekly gain of nearly 10%.
Meanwhile, U.S. West Texas Intermediate (WTI) crude for April delivery increased by 94 cents, or 1%, to $96.67 per barrel, heading for a weekly rise of more than 6%.
The U.S. Treasury issued the temporary license in an effort to ease supply disruptions and calm energy markets affected by the ongoing geopolitical tensions in the Middle East.
Russian Oil Waiver Fails to Ease Market Concerns
Despite the waiver, analysts believe the move offers only short-term relief and does not solve the underlying supply imbalance.
Emril Jamil, a senior analyst at LSEG, noted that Brent crude had already moved above the $100 per barrel level, indicating strong market support even after efforts to stabilize prices.
According to Jamil, the market still expects tight oil supply conditions in the coming months, as reflected in crude futures spreads that signal persistent shortages.
He also explained that Brent crude remains more strongly supported than WTI, mainly because Europe is more vulnerable to energy security risks, while the United States benefits from higher domestic oil production.
Strait of Hormuz Remains a Key Risk
Yang An, an analyst at Haitong Futures, said that while the U.S. waiver helped reduce some market anxiety, it does not address the core issue affecting global oil supply.
The most critical factor, he said, is the restoration of shipping through the Strait of Hormuz, one of the world’s most important oil transport routes.
Strategic Oil Reserve Releases Attempt to Stabilize Markets
The Russian oil waiver came shortly after the U.S. Department of Energy announced plans to release 172 million barrels of oil from the Strategic Petroleum Reserve to help control soaring prices.
This initiative is part of a coordinated effort with the International Energy Agency (IEA), which agreed to release a record 400 million barrels of oil from global strategic reserves.
However, analysts believe the impact of these releases may be limited.
Tony Sycamore, an analyst at IG Markets, noted that any temporary relief from the IEA’s announcement quickly faded as geopolitical tensions in the Middle East escalated again.
Oil Prices Surge on Escalating Middle East Conflict
Both Brent and WTI crude benchmarks surged more than 9% on Thursday, reaching their highest levels since August 2022.
The rally accelerated after Iran’s new Supreme Leader Mojtaba Khamenei vowed to continue fighting and keep the Strait of Hormuz closed as leverage against the United States and Israel.
In a further escalation, two fuel tankers in Iraqi waters were reportedly attacked by explosive-laden Iranian boats, according to Iraqi security officials.
An Iraqi government official later confirmed that the country’s major oil ports had completely halted operations, adding to fears of a wider disruption to global oil supply.
U.S. Navy May Escort Tankers Through Hormuz
U.S. Treasury Secretary Scott Bessent told Sky News that the U.S. Navy could potentially escort commercial vessels through the Strait of Hormuz, possibly alongside an international coalition, once conditions allow safe military operations.
The development highlights the growing risk to global energy supply routes, which continues to drive volatility in oil markets.
