Oil prices climbed during Asian trading on Friday as renewed attacks on tankers in the Middle East raised fears of further disruptions to global energy supplies. However, crude remained on course for substantial weekly losses as investors reconsidered the outlook for the US-Israeli conflict with Iran.
The latest rebound followed a volatile week for energy markets, with traders weighing persistent shipping threats against expectations that political developments in Washington could encourage diplomatic negotiations.
At 06:58 GMT, January Brent crude futures gained 1.7% to $99.98 per barrel. Meanwhile, US West Texas Intermediate (WTI) crude futures advanced 1.3% to $91.67 per barrel.
Despite the recovery, Brent was heading for a weekly decline exceeding 15%, while WTI was on track to lose approximately 12%.
Oil Prices Recover After Sharp Midweek Selloff
Oil prices extended their recovery following significant gains on Thursday, when Brent crude settled nearly 4% higher and WTI increased approximately 2.7%.
The rebound came after both benchmarks plunged more than 8% on Wednesday, reaching their lowest closing levels since August 31.
The earlier decline followed the US midterm elections, which raised expectations that growing political pressure could accelerate diplomatic efforts to resolve the conflict with Iran.
Investors initially viewed the election outcome as a potential opportunity for easing Middle East tensions and restoring disrupted oil shipments.
However, renewed tanker incidents and continued uncertainty surrounding peace negotiations quickly brought supply concerns back into focus.
The latest price movements highlight how sensitive global oil markets remain to geopolitical developments.
Strait of Hormuz Tanker Attacks Raise Supply Concerns
Fresh security incidents involving commercial vessels have intensified concerns about shipping through the Strait of Hormuz.
The strategically important waterway is a major transportation route for global crude oil exports, making disruptions particularly significant for international energy markets.
According to the United Kingdom Maritime Trade Operations (UKMTO), at least five vessels have reported incidents since Sunday.
The pace of reported attacks has approached the elevated levels recorded in October, when maritime authorities documented 35 vessel-related incidents.
Iran’s Islamic Revolutionary Guard Corps (IRGC) reported that two oil tankers and a tugboat caught fire in separate incidents after attempting to navigate routes it described as unauthorized.
The incidents have renewed doubts about whether commercial shipping through the Strait of Hormuz can return to normal operations without a lasting diplomatic agreement.
Even if political negotiations progress, traders remain concerned that restoring reliable tanker movements could take time.
Saudi Arabia Warns of Shipping Risks Near Yanbu
Security concerns have also extended beyond the Persian Gulf and Strait of Hormuz.
Saudi Arabia issued warnings about potential maritime dangers near Yanbu, a major oil export terminal on the Red Sea.
The warnings came as Yemen’s Iran-aligned Houthi militants continued attacks targeting Saudi Arabia.
Yanbu plays an important role in the kingdom’s energy export infrastructure, particularly when alternative shipping routes are needed during disruptions in the Gulf.
Any additional threats to Red Sea shipping could complicate efforts to maintain stable oil exports from the region.
As a result, energy traders are monitoring maritime security developments across both the Strait of Hormuz and the Red Sea.
US Midterm Elections Create Uncertainty Over Iran Conflict
Political developments in the United States have become another major factor influencing oil prices.
The Democratic Party secured control of both chambers of Congress following the midterm elections, dealing a significant setback to President Donald Trump’s Republican Party.
The election results initially raised expectations that increased political pressure could encourage the US administration to pursue negotiations aimed at ending the conflict with Iran.
A diplomatic breakthrough could potentially improve conditions for oil shipments and ease some of the supply disruptions affecting global energy markets.
However, the shift in congressional control does not guarantee an immediate resolution.
The conflict remains complex, and uncertainty over the timing and effectiveness of potential negotiations continues to influence investor sentiment.
Consequently, oil prices remain vulnerable to sudden changes in expectations surrounding military developments and diplomatic progress.
Iran Continues Diplomatic Talks With Saudi Arabia and Qatar
Despite the continuing geopolitical tensions, diplomatic communication between Iran and neighboring countries remains active.
Iranian Foreign Minister Abbas Araqchi held separate telephone discussions with his Saudi Arabian and Qatari counterparts regarding efforts to improve regional stability.
The conversations addressed recent diplomatic developments and initiatives aimed at reducing tensions in the Middle East.
Although no immediate breakthrough was announced, the discussions suggest that regional diplomatic channels remain open.
For oil markets, progress toward a negotiated settlement could become an important factor in determining the future of regional crude supplies.
Nevertheless, renewed maritime incidents demonstrate that substantial security risks persist even as diplomatic efforts continue.
Ukraine Targets Russian Oil Infrastructure
Supply concerns have also emerged outside the Middle East as Ukraine intensified attacks against Russian energy infrastructure.
Ukrainian forces reportedly renewed drone operations targeting Russian oil refineries, adding another source of uncertainty to global petroleum markets.
The Ryazan refinery, one of Russia’s largest oil processing facilities, appeared to have been targeted during an overnight drone attack, according to Reuters video analysis.
Any sustained disruption to Russian refining operations could affect the country’s petroleum product output and export capacity.
The developments illustrate how multiple geopolitical conflicts are simultaneously influencing global energy supply expectations.
Oil Market Outlook Remains Highly Uncertain
The latest oil price rebound reflects ongoing concerns about the security of global crude shipments, particularly through the Strait of Hormuz.
However, the substantial weekly losses suggest that investors are also pricing in the possibility of reduced geopolitical tensions and a gradual recovery in Middle Eastern oil exports.
Market participants will continue monitoring tanker attacks, diplomatic negotiations involving Iran, US political developments, and potential disruptions to Russian energy infrastructure.
For now, the combination of geopolitical uncertainty and changing supply expectations is likely to keep oil markets volatile.
