On Friday, Brent crude futures rose by 1.67% to $99.90 per barrel, while U.S. West Texas Intermediate crude futures increased by 1.43% to $91.69 per barrel. This uptick in oil prices is attributed to concerns over renewed military actions against Iran, which could disrupt oil supplies from the Middle East.
Bob McNally, founder and president of Rapidan Energy Group, indicated an 80% chance of military conflict resuming, predicting that oil prices could surpass $100 per barrel. However, there are also emerging hopes for a diplomatic resolution, as Iran has reportedly sent a nuclear proposal to the U.S. through Qatar.
The situation is further complicated by recent attacks on oil tankers in the Strait of Hormuz, which are occurring at a near-record rate, according to UK Maritime Trade Operations data. McNally emphasized the stark differences between U.S. and Iranian positions on nuclear capabilities, suggesting that as long as these differences persist, the potential for escalation remains high.
This sentiment is echoed by other analysts, including Samy Chaar and Luca Bindelli from Lombard Odier