Brent crude is positioned to close its most significant weekly advance in three months, despite a late-session pullback on Friday.
The price surge reflects growing market anxiety over potential supply disruption in the Red Sea, the world's second-most important energy supply route, amid fears of further escalation in the U.S.-Israeli war with Iran.
Oil futures retreated on Friday but are still set for hefty weekly gains because of concerns about disrupted energy flows in the Red Sea and fears of further escalation in the U.S.-Israeli war with Iran, according to reports from The Globe and Mail and FT.
The conflict marks a significant shift in the geopolitical landscape, raising immediate questions about the security of key shipping lanes and the potential for broader regional instability.
The price action underscores the market's sensitivity to geopolitical risk premiums.
With renewed U.S. military strikes on targets in Iran intensifying tensions, traders are pricing in the possibility of sustained supply constraints.