Oil prices set for second weekly gain as Iran war disrupts supply

Oil prices held broadly steady on Friday but were on course for a second straight weekly rise, according to Mettis Global, as the ongoing conflict between the United States and Iran kept crude flows from the Middle East under strain. Brent futures slipped 0.59 per cent to $93.23 a barrel, while WTI eased to $86.17 by 11:05 am PST. Both benchmarks have risen across the last five sessions, Brent by over 7 per cent and WTI by more than 8 per cent, and both trade at levels not seen since July 24.

CNBC reported that supply losses from Saudi Arabia, Iraq, the UAE and Kuwait could persist as the fighting drags on. Peace talks have not advanced, the earlier ceasefire lapsed this week, and US President Donald Trump has threatened tough economic steps against nations backing Tehran. The UAE has also halted financial and economic dealings with Tehran until further notice.

Hostilities erupted on February 28 after strikes by the US and Israel on Iran, and have left thousands dead while disrupting energy flows across the region. Hormuz shipping is restricted by Iran, and strikes on energy sites have added to the strain on global oil and gas. Only nine vessels crossed the strait on Wednesday, well below pre-war levels when about a fifth of global oil consumption passed through it.