Key Points
- Brent settles above $88 a barrel
- WTI gains 4.5pc in Friday trade
- Weekly rise reaches around 16pc
- Supply concerns support crude rally
ISLAMABAD: International oil prices ended the week with gains of about 16 per cent after escalating conflict involving Iran heightened fears of disruptions to global energy supplies and key shipping routes in the Middle East.
Brent crude, the global benchmark, settled at $88.10 per barrel on Friday, rising $3.87 or 4.59 per cent from the previous session.
US West Texas Intermediate (WTI) crude climbed $3.54 or 4.48 per cent to close at $82.49 a barrel. Both benchmarks reached their highest levels since mid-June.
The rally accelerated after the United States and Iran expanded military operations across the Gulf region, raising concerns over the security of oil exports and shipping.
Traders also monitored threats to maritime traffic through the Strait of Hormuz and the Red Sea, two critical routes for global energy trade.
On a day-to-day basis, Brent advanced 4.59 per cent from Thursday’s settlement, while WTI gained 4.48 per cent. The sharp rise followed renewed concerns that prolonged hostilities could affect supplies from one of the world’s most important oil-producing regions.
For the week, both Brent and WTI rose about 16 per cent, marking their strongest weekly performance in several months.
Brent climbed from around $76 per barrel at the end of the previous week to above $88, while WTI advanced from roughly $71 to more than $82.
Oil surges over geopolitical jitters
Analysts said oil markets are pricing in a growing geopolitical risk premium as investors assess the likelihood of further escalation and possible supply disruptions. Relatively tight global inventories and stronger refining margins have also helped support prices, according to The Wall Street Journal.
Market participants will continue to monitor developments in the Arabian Gulf, where any disruption to tanker movements could have significant implications for global energy supplies.
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Several analysts have warned that crude prices could rise if tensions persist, though they may retreat if diplomatic efforts succeed in easing the conflict, according to MarketWatch.
Oil prices have been highly volatile throughout 2026 amid repeated tensions involving Iran, uncertainty over shipping through the Strait of Hormuz and changing expectations for global economic growth.
Earlier this month, Brent crude traded near $72 per barrel after OPEC+ agreed to raise production targets and exports through the Strait of Hormuz recovered.
The latest surge has reversed much of that decline, underscoring the sensitivity of energy markets to geopolitical developments in the Middle East.
