Oil Prices Extend Weekly Gains

Brent crude rose 2.6% to $116.13 per barrel on Friday, reaching its highest level in six months as traders increasingly anticipated renewed US military action against Iran in the coming weeks. US West Texas Intermediate (WTI) futures climbed approximately 3% to $102.56 per barrel.

Brent was on track to gain nearly 6% for the week, potentially marking its third consecutive weekly advance. WTI was positioned for a weekly increase of around 1%.

The price movement reflects a growing geopolitical risk premium as investors assess the potential consequences of further military escalation in the Middle East. The possibility of renewed strikes on Iran has raised concerns about disruptions to regional energy production and supply routes.

US-Iran Tensions Add to Market Uncertainty

Iran’s army chief said the country’s military was fully prepared for asymmetric warfare following improvements in its capabilities, according to the state media agency Tasnim.

Meanwhile, President Donald Trump said on Wednesday that Washington was not negotiating with Tehran and that something would happen “fairly soon.” His comments followed reports that US and Israeli officials had plans for renewed strikes against Iran after the November 3 midterm elections.

The possibility of further military action has increased uncertainty for oil markets, where prices remain sensitive to developments affecting regional production, infrastructure and transportation.

Although the timing and scope of any renewed strikes remain uncertain, the prospect of escalation has contributed to stronger crude prices.

Houthi Attacks Raise Concerns Over Saudi Oil Security

Security risks have also intensified in Saudi Arabia following continued attacks by Iran-allied Houthi militants. The US State Department ordered non-essential personnel to leave the country amid the deteriorating security situation.

Saudi state media reported that a drone attack targeting the Shaybah oil field in the Eastern Region on Wednesday killed two people and injured two others. A separate attack on King Fahd International Airport in Dammam reportedly killed at least two people and injured eight.

Reuters also reported that Saudi Aramco had instructed employees to evacuate its Dhahran headquarters and work remotely following a series of attacks attributed to Iran-backed Houthi rebels.

These developments have increased concerns about the security of Saudi energy infrastructure. Any sustained disruption to production or export operations could tighten global oil supply conditions, although the extent of any direct impact on output was not specified in the report.

What Oil Markets Should Watch Next

The outlook for crude prices will depend heavily on whether tensions lead to renewed US and Israeli military action against Iran and whether attacks on Saudi Arabia continue. Developments affecting regional energy infrastructure could sustain the risk premium embedded in oil prices.

For investors and energy market participants, the key variables are the scale of any escalation, the resilience of Saudi oil operations and the potential for disruptions to regional supply. Continued geopolitical uncertainty could support elevated prices, while a reduction in immediate military risks could ease some of the upward pressure.