Oil set for strong weekly gain as Middle East war disrupts supply

Oil prices are heading for another weekly gain as the war involving Iran continues to intensify, tightening global supply and raising fears of a deeper energy crisis.

Brent crude traded above $110 per barrel, marking a weekly increase of about 7% after reaching its highest level since mid-2022 on Thursday. Meanwhile, the most active US crude futures hovered near $98 per barrel, News.Az reports, citing Bloomberg.

Both benchmarks climbed sharply after reports that Iranian officials are increasingly unwilling to discuss reopening the Strait of Hormuz, as they remain focused on the ongoing US-Israeli military campaign.

The global benchmark Brent has surged nearly 50% this month, with the conflict now nearing its third week. The escalation has led to the near-total closure of the Strait of Hormuz — a critical route for global oil shipments — leaving supplies stranded in the Persian Gulf.

As a result, several major OPEC producers have been forced to cut output, further tightening the market and fueling the price rally.

News.Az 

By Nijat Babayev