Oil Prices Climb as US-Iran Conflict Escalates, Red Sea Closure Threat Looms

Oil prices rose Friday as fighting between the United States and Iran intensified across the Gulf region, threatening to disrupt oil flows through the Strait of Hormuz. Adding to the pressure, Iran has reportedly asked Houthi forces to prepare for a possible closure of the Red Sea shipping route. Brent crude edged up to $84.30 a barrel, while U.S. West Texas Intermediate rose to $79.11. Both benchmarks have surged nearly 12% this week, with Brent on track for its third straight weekly gain.

Military Strikes Intensify After Truce Collapses

The U.S. carried out two major waves of airstrikes in a single day on Wednesday, marking the first such escalation since a ceasefire agreement paused fighting last month. Strikes continued into friday , targeting areas near Iran’s southern coast. Iran has responded with missile and drone attacks on U.S. military bases in the region, including one in Jordan. Qatar’s military said it intercepted an Iranian missile attack early Friday, though a child was injured by shrapnel during the operation.

Analysts Warn of Growing Supply Risks

Energy officials have expressed growing concern over the situation, with the International Energy Agency’s head warning that oil security remains a critical issue if tensions don’t ease soon. Analysts say oil prices could continue climbing if the conflict worsens, with technical indicators suggesting WTI could test the mid-$80 range.