Key Points

  • Brent crude settled at $94.39 a barrel, while WTI ended at $87.06 as geopolitical risks increased concerns over future supply.
  • Brent gained 6.39% during the week and WTI rose 5.66%, with both benchmarks reaching their highest levels since July 24 in the previous session.
  • Restricted flows through the Strait of Hormuz and continued disruptions to Middle Eastern supply are adding pressure to an already sensitive oil market.
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Oil prices rose on Friday as the prospect of tougher U.S. economic measures against Iran and its trading partners increased concerns about further disruptions to global crude supplies. The move extended a second consecutive weekly advance for Brent and WTI, highlighting how geopolitical developments are increasingly influencing energy markets alongside underlying supply and demand conditions.

Sanctions Threaten to Tighten Iran-Linked Supply

International benchmark Brent crude futures settled at $94.39 a barrel, gaining 61 cents, or 0.65%, while U.S. West Texas Intermediate crude settled at $87.06, up 23 cents, or 0.26%. The gains followed U.S. President Donald Trump’s threat of economic sanctions against countries trading with Iran, raising expectations that restrictions could further constrain the movement of oil through an already disrupted regional supply network.

Iran has vowed a “devastating” response to the threatened measures, adding another layer of uncertainty to an energy market already sensitive to developments across the Middle East. For oil traders, the central concern is whether additional sanctions could affect not only Iranian exports but also the behavior of countries and companies involved in transporting or purchasing regional crude.

Hormuz Disruptions Keep Supply Risks Elevated

Physical supply conditions remain a major driver of the latest price gains. Data cited by Reuters showed that only seven commodity ships crossed the Strait of Hormuz on Thursday, underscoring the extent to which regional instability is affecting one of the world’s most important energy shipping corridors.

Supply from several major Middle Eastern producers remains curtailed, limiting the market’s ability to absorb additional disruptions. The Strait of Hormuz is particularly significant because of the volume of oil and other energy commodities that normally pass through the waterway, meaning prolonged restrictions could have consequences well beyond the countries directly involved in the conflict.

Oil Extends Weekly Gains as Geopolitical Premium Builds

The latest move puts both major benchmarks firmly higher for the week. Brent has gained 6.39%, while WTI has risen 5.66%, with both contracts reaching their highest levels since July 24 during the previous session. The sustained weekly gains suggest that traders are placing greater emphasis on supply risks as geopolitical uncertainty persists.

Additional energy-market pressure is coming from developments outside the Middle East. Ukrainian President Volodymyr Zelenskiy said Ukraine had struck a Russian oil refinery in Perm, introducing another potential disruption risk to global energy infrastructure. While the longer-term effect on Russian oil flows remains uncertain, attacks on refining facilities can complicate regional fuel markets and contribute to broader volatility.

Oil markets will remain focused on whether the United States proceeds with broader sanctions against Iran’s trading partners and how those governments respond. Investors will also monitor shipping activity through the Strait of Hormuz, the restoration of Middle Eastern production and any further attacks on energy infrastructure in Russia and Ukraine. A prolonged reduction in regional supply could keep prices elevated, while diplomatic progress or a normalization of shipping flows could ease some of the geopolitical premium currently embedded in crude prices.


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