Oil prices surge over $1 as tanker attacks and stalled peace talks spark weekly rally

Tehran - BORNA - Brent crude futures settled up $1.45, or 1.67%, at $88.52 a barrel. U.S. West Texas Intermediate (WTI) crude settled up $1.15, or 1.42%, at $82.40 a barrel.

For the week, Brent advanced 6%, while WTI gained 5.4%.

Andy Lipow, president of Lipow Oil Associates, stated that new attacks on tankers and stalled ceasefire efforts would drive prices higher heading into the weekend, noting that while crude hovers near $80, diesel at $180 per barrel and gasoline at $130 per barrel are directly hitting consumers.

Despite U.S. claims of controlling the Strait of Hormuz, maritime traffic through the vital waterway remained below monthly averages. Prior to the onset of U.S.-Israeli aggression against Iran in late February, the strait served as the transit corridor for approximately one-fifth of global oil and liquefied natural gas (LNG), with ongoing disruptions serving as a primary catalyst for rising prices.

The United Arab Emirates' state news agency, WAM, reported that two vessels belonging to the Abu Dhabi National Oil Company (ADNOC) were attacked Thursday while transiting the strait. Phil Flynn, senior analyst at Price Futures Group, noted that news of the tanker attacks directly fueled the market rally.

Additionally, three sources familiar with the matter stated that crude exports from Russia's Sheskharis terminal at the Black Sea port of Novorossiysk were suspended Friday following a Ukrainian drone strike, adding further disruptions to Russia's export infrastructure.

The supply constraints in the Middle East and Black Sea coincided with OPEC forecasts pointing to weaker demand growth and U.S. crude inventories recording their largest weekly build in over 3.5 years, according to Reuters.

Meanwhile, energy services firm Baker Hughes reported Friday that U.S. energy companies added one oil rig over the past week, bringing the total active count to 455—the highest level since May 2025 and up 43 from the same period last year. Gas drilling rigs also increased by four to 128.

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