Oil prices climbed on Friday as markets digested a new escalation in tensions between the United States and Iran.
Tehran vowed to target regional infrastructure if President Donald Trump follows through on previous threats to strike the country's critical assets, adding a fresh layer of uncertainty to global energy supply chains.
Brent crude extended gains from a sharp rally on Thursday, when prices surged after President Trump declared that the US military would attack Iran "VERY HARD" and seize its oil infrastructure points.
The latest threat from Iran suggests that any US action could trigger a broader regional conflict, potentially disrupting shipping routes and production facilities across the Middle East.
The market is now pricing in a higher risk premium for Middle Eastern supply disruptions.
Investors are closely monitoring the Strait of Hormuz, through which a significant portion of global oil exports pass, for any signs of increased military activity or shipping delays.