Oil prices ticked up on Friday as the US and Iran intensified their military exchanges across the Gulf, raising concerns that the conflict could spill over into critical shipping lanes.
The breakdown of the recent truce has limited oil flows out of the Strait of Hormuz, while analysts warn that the Red Sea could become another major chokepoint for global energy supplies.
Brent crude and WTI posted modest gains in the session, reflecting the market’s sensitivity to any further disruption in Middle Eastern logistics.
The price move underscores how quickly geopolitical risk premiums can re-enter energy valuations when diplomatic channels fail.
Traders are closely monitoring shipping insurance rates and tanker movements for signs of broader route closures.
The escalation follows weeks of heightened tensions, with Iran previously instructing Houthi rebels in Yemen to prepare for potential Red Sea closures.