Oil Prices Surge Above $85 as US-Iran Escalation Fuels Strait of Hormuz Supply Fears

By Staff, Agencies

Oil prices climbed on Friday as intensifying military exchanges between the United States and Iran raised concerns over global energy supplies, with disruptions around the Strait of Hormuz and potential threats to the Red Sea shipping route adding pressure to markets.

Brent crude futures increased by $1.05, or around 1.25%, reaching $85.28 a barrel by 0118 GMT, while US West Texas Intermediate [WTI] futures rose $1.03, or about 1.3%, to $79.98 a barrel. The gains reversed losses from the previous session.

Both major benchmarks have risen nearly 12% over the course of the week, placing Brent on track for a third consecutive weekly increase and WTI for a second straight weekly gain.

The price surge follows renewed US airstrikes against Iran after a temporary pause in fighting collapsed. The United States carried out two major waves of attacks in a single day on Wednesday, largely targeting areas near Iran’s southern coastline, and continued operations into Thursday.

International Energy Agency [IEA] Executive Director Fatih Birol warned that oil security remains a major concern amid the escalating conflict.

“Oil security is still a critical issue,” Birol said, adding that the situation would become increasingly worrying if tensions failed to improve in the coming weeks.

US Central Command announced that American forces had launched another round of strikes against Iran, describing the operation as the sixth consecutive night of attacks aimed at weakening Iranian military capabilities.

Iran responded with missile and drone operations targeting US military positions in neighboring countries, including attacks against a recently expanded air base in Jordan.

Concerns over energy supplies increased further after reports that Iran had instructed its allies in Yemen’s Ansarullah movement to prepare for a possible closure of the Red Sea oil route if US attacks expanded to Iranian power infrastructure.

Market analysts said that continued escalation could push prices higher, with IG analysts noting that WTI could test levels in the mid-$80 range if it remains above key support levels in the mid-$70s.

The Strait of Hormuz, one of the world’s most important energy transit routes, remains a central concern for global oil markets due to the volume of crude and gas shipments that pass through the waterway.

Adding another layer of market sensitivity, Trump Media & Technology Group announced the launch of a paid licensed data service providing financial institutions with rapid access to posts from influential Truth Social accounts, including those belonging to President Donald Trump, whose statements have previously affected oil market movements.