Oil prices moved higher in Asian trading on Friday and were on track for strong weekly gains as renewed tensions between the United States and Iran raised concerns about global energy supplies.
The main focus remains the Strait of Hormuz, where shipping restrictions and military activity have increased fears of prolonged disruptions to oil flows.
Oil Prices Extend Weekly Rally
Brent crude futures for November delivery rose around 0.2% to $95.67 per barrel.
West Texas Intermediate crude also gained about 0.3% to $91.58 per barrel.
Brent was on track for a weekly gain of roughly 7%, while WTI was heading for an increase of around 10%.
Both benchmarks reached six-week highs during the previous session.
U.S.-Iran Tensions Support Crude Prices
The latest rally followed U.S. strikes on Iranian targets earlier in the week.
The attacks reportedly included military assets near the Strait of Hormuz.
Iran responded with missile and drone strikes against U.S. and allied positions across the Gulf region, including locations in Kuwait, Bahrain and Jordan.
The escalation has increased concerns that the conflict could continue to affect energy markets.
Strait of Hormuz Remains Key Risk
The Strait of Hormuz remains the most important issue for oil traders.
Iran has expanded restrictions on international shipping through the waterway.
That has raised fears that crude exports could face longer-lasting disruptions.
The Strait of Hormuz is one of the world’s most important energy routes, so any disruption can quickly influence global oil prices.
Diplomatic Tensions Remain High
The conflict has also raised concerns about civilian casualties.
A U.S. strike reportedly hit an area hosting a wedding in southern Iran, killing civilians and drawing condemnation from Tehran.
U.S. Vice President JD Vance said on Thursday that Washington did not plan to hold talks with Iran unless Tehran stopped attacking commercial shipping in the Strait of Hormuz.
The comments reinforced concerns that a diplomatic breakthrough may not be close.
U.S. Crude Inventories Fall
Oil prices are also receiving support from tighter U.S. inventories.
Commercial crude stocks fell to about 424.5 million barrels in the week ended August 28.
That was down from roughly 428.9 million barrels one week earlier, according to the U.S. Energy Information Administration.
The U.S. Strategic Petroleum Reserve stood at approximately 286.6 million barrels.
Lower inventories can support crude prices by signaling tighter supply conditions.
OPEC+ Meeting Comes Into Focus
Traders are also watching the next OPEC+ meeting.
The producer group is expected to keep its October oil output policy unchanged when it meets on Sunday.
The meeting comes as OPEC+ continues to unwind one layer of earlier production cuts.
However, supply disruptions linked to the Strait of Hormuz have reduced the immediate impact of production policy on crude prices.
For now, geopolitical tensions, shipping risks and lower U.S. inventories remain the main drivers behind the latest oil rally.
