Oil set for second weekly gain as US ramps up pressure on Iran

Oil prices eased on Friday but remained on course for a second consecutive weekly gain, according to Business Recorder. Brent crude futures slipped 50 cents to $93.28 a barrel, while WTI fell 44 cents to $86.39. Both benchmarks had climbed this week, with Brent up more than 5.4 per cent and WTI rising 4.8 per cent after reaching their highest since July 24.

Washington has warned of the harshest possible financial penalties against Iran, with the stated goal of toppling its leadership. On Friday Iran described its answer to any fresh American threats as devastating. ANZ analyst Soni Kumari linked the recent rally to the renewed US naval blockade and to the risk of further penalties targeting Iranian crude sales. An earlier peace agreement lapsed this week, and neither side has moved to resume talks.

Kpler data showed only seven commodity vessels transited the Strait of Hormuz on Thursday, half of the previous day's count. Empire FX research analyst Crispus Nyaga said the direct effect on supply could stay modest since Iran's shipments are already under heavy restriction, though more shipping incidents and retaliation might worsen matters. Prior to the late-February strikes by the US and Israel, the waterway accounted for roughly a fifth of worldwide oil and LNG shipments.