On Friday, crude oil futures saw an increase, with Brent crude rising 0.7% to $113.50 per barrel and U.S. West Texas Intermediate (WTI) crude up 0.8% to $100.24 per barrel. Brent is on track for a weekly gain of 3.3%, marking its third consecutive week of increases, while WTI is expected to decline by 1.1%, ending its two-week upward trend.
The market is reacting to heightened tensions in the Middle East, particularly following U.S. President Donald Trump's accusations against Iran regarding attacks on vessels in the Strait of Hormuz. Trump suggested that Iran is attempting to manipulate oil prices ahead of the U.S. Midterm Elections, claiming they are fabricating incidents to drive prices up.
Meanwhile, Iran's military has indicated readiness for asymmetric warfare, and reports of attacks by Iran-backed Houthi rebels on Saudi Aramco facilities have raised concerns about supply disruptions.
These developments are critical as they could lead to increased volatility in oil prices, impacting not only the energy sector but also broader market sentiment as investors weigh the risks associated with geopolitical instability