Oil Holds Above $100 as Middle-East Tensions Fuel Fourth Straight Weekly Gain
Oil prices stayed comfortably above the psychological $100-per-barrel mark on Friday, poised for a fourth consecutive week of gains as markets priced in heightened risks to crude flows through the Red Sea, the Strait of Hormuz and other key chokepoints.
Brent futures slipped just 53 cents, or 0.53 %, to $100.16 a barrel after briefly topping $101 in earlier trade. The global benchmark had surged about 7 % on Thursday—its first break above $100 since May—and is still on track for an eye-catching 14.6 % weekly advance.
U.S. West Texas Intermediate (WTI) retreated 73 cents, or 0.79 %, to $91.46 a barrel, having touched its highest level since 11 June the previous day. Despite Friday’s pause, WTI remains up roughly 11.8 % for the week.
The rally has been driven by fears that escalating hostilities between the United States and Israel on one side and Iran-aligned forces on the other could disrupt shipping lanes that handle a significant share of global oil trade. Analysts warn that any prolonged closure of the Bab al-Mandab strait or the Strait of Hormuz would tighten supplies sharply and push prices even higher.
Traders are also digesting signs of resilient demand, with U.S. crude inventories drawing down more than expected and Asian refiners stepping up purchases. Meanwhile, supply cuts by OPEC+ members Saudi Arabia and Russia remain in force through the summer, adding a supportive floor under prices.
Volatility is expected to remain elevated as geopolitical headlines continue to dominate sentiment, overshadowing macro-economic concerns about slower growth in advanced economies.
