Brent hovers near $94 as US-Iran conflict continues to squeeze energy supply

Oil prices head for weekly gains

Oil prices extended their weekly rally on Friday, with Brent crude hovering near $94 a barrel as the ongoing US-Iran conflict continued to disrupt energy supplies.Brent crude inched to $93.89 per barrel around 7:30 am IST, after gaining 2.4% in the previous session. US West Texas Intermediate stood at 86.84 per barrel, following a 2.3% rise a day earlier.The benchmarks were on course for a second straight weekly gain. Brent had risen more than 7% over the previous five sessions, while WTI had advanced more than 8%. Both had reached their highest levels since July 24 during the run of gains.The latest gains followed a more than 2% jump in oil prices on Thursday, when they settled at their highest in nearly a month. Prices rose after US President Donald Trump warned that countries supporting Iran could face retaliation, as efforts to resolve the war remained stalled.The conflict has raised concerns over continued curtailments from major oil producers including Saudi Arabia, Iraq, the UAE and Kuwait. An earlier peace deal between the sides expired this week, with neither side making efforts to resume talks.Earlier on Wednesday Terump threatened “economic warfare and isolation on an unprecedented scale” against Tehran and warned of consequences for any country providing “any type of lifeline to Iran”.The UAE also suspended all financial and economic transactions with Iran until further notice this week, highlighting the difficult ties between the Gulf Arab oil producer and Tehran.The war began on February 28, when the US and Israel launched military strikes on Iran. Thousands of people have been killed since then, while Tehran’s blockade of the Strait of Hormuz and Iranian attacks on energy facilities across the Middle East have disrupted oil and gas flows.The impact has also been visible in shipping through the strategic waterway. According to Reuters, nine vessels transited the Strait of Hormuz on Wednesday, unchanged from the previous day and well below pre-war levels. Before the war, shipments equivalent to about one-fifth of global consumption passed through the waterway.Meanwhile, although the ongoing conflict has pushed oil prices back above the $90-a-barrel mark from around $70 earlier, the spike remains well below the $126-a-barrel levels seen during the initial phase of the conflict.