Oil tops $95 as renewed US-Iran hostilities fuel supply fears

Mettis Global reported that oil was on course for its biggest weekly gain since mid-July, even as prices eased on Friday. Brent crude futures slipped 0.02 per cent to $95.50 per barrel, while West Texas Intermediate fell 0.23 per cent to $91.51. Both benchmarks were up sharply for the week, with Brent gaining 7.1 per cent and WTI 9.8 per cent.

Dozens of people, among them Iranian civilians, were killed or hurt in American strikes during the week, the sharpest exchange with Tehran since July. Hostilities began in late February after American and Israeli attacks, and the conflict is now in its seventh month with geopolitical risk still high. Israel's defence minister, Israel Katz, warned that Iranian military and civilian infrastructure, including energy sites, would be targeted. US Vice President JD Vance said Washington would not negotiate with Tehran until attacks on commercial ships in the Strait of Hormuz ended.

Russia-Ukraine developments partly offset that upward pressure after Vladimir Putin said a path toward peace remained open. Iran has also enlarged its list of ships that fail its transit requirements, and such vessels could be fined, taken or held. Iraqi energy officials put August crude exports at about 2.34 million barrels a day, up from around 1.35 million in July. Iraq's September shipments are expected to climb further, helped by deep price discounts and Tehran's clearance for Iraqi tankers.