Oil prices rose in Asian trading on Friday and were on track for sharp weekly gains as renewed military hostilities between the U.S. and Iran heightened concerns over prolonged disruptions to energy flows through the Strait of Hormuz.

As of 21:07 ET (01:07 GMT), Brent Oil Futures expiring in November edged up 0.2% to $95.67 per barrel, while West Texas Intermediate (WTI) crude futures also gained 0.3% to $91.58 per barrel.

Brent oil was set for a 7% weekly rise, while WTI headed for a 10% surge. Both contracts had reached six-week highs during the previous session

The latest escalation followed U.S. strikes on Iranian targets earlier this week, including military assets near the Strait of Hormuz.

Iran responded with missile and drone strikes against U.S. and allied positions across the Gulf region, including Kuwait, Bahrain and Jordan.

The Strait of Hormuz remains the main focus for traders. Iran has expanded restrictions on international shipping through the waterway, raising concerns that disruptions could persist and tighten global oil markets.

The violence has also raised concerns over civilian casualties. A U.S. strike reportedly hit an area hosting a wedding in southern Iran, killing civilians and prompting Tehran to condemn the attack.

U.S. Vice President JD Vance told reporters on Thursday that the U.S. did not plan to hold talks with Iran unless Tehran stopped attacking commercial shipping in the Strait of Hormuz.

Oil is also being supported by signs of tighter inventories. U.S. commercial crude stocks fell to about 424.5 million barrels in the week ended Aug. 28, down from 428.9 million barrels a week earlier, according to the Energy Information Administration. The U.S. Strategic Petroleum Reserve stood at about 286.6 million barrels.

Supply policy from OPEC+ will also be in focus. The group is expected to keep its October oil output policy unchanged when it meets on Sunday, Reuters reported, citing sources.

The meeting comes as the producer group completes the unwinding of one layer of production cuts, although disruptions through Hormuz have reduced the impact of its production decisions on prices.

Source: Investing.com 

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