Oil Prices Surge as US‑Iran Tensions Escalate, Weekly Gains Reach Highest Since July

Oil prices climbed on Friday, setting the stage for the steepest weekly rise since mid‑July as heightened US‑Iran hostilities stoked fears of Middle East supply disruptions. Brent crude futures edged up 15 cents, or 0.2%, to $95.67 a barrel at 0100 GMT, while U.S. West Texas Intermediate (WTI) futures rose 26 cents, or 0.3%, to $91.56. On a weekly basis, Brent is up 7.1% and WTI 9.8%, marking the largest gains since the week ended July 20.

The spike follows a week of U.S. attacks that killed and wounded dozens, including Iranian civilians, representing the fiercest clashes between the two nations since the conflict began with U.S.‑Israeli strikes in late February. The war is now in its seventh month.

Israeli Defence Minister Israel Katz warned that Israel would "cripple" Iran’s military and civilian infrastructure, including energy facilities. U.S. Vice President J.D. Vance told reporters that Washington would not engage in talks with Iran unless Tehran ceases attacks on commercial shipping in the Strait of Hormuz.

Amid the turmoil, Russian President Vladimir Putin said a path to a Ukraine peace settlement still exists, noting that both the U.S. and China are ready to support a resolution.

Iran has broadened its list of vessels deemed non‑compliant, subject to fines, confiscation or detention if they attempt to transit the Hormuz Strait. Only a handful of Iraqi ships have been cleared to pass through.

Iraq’s oil exports surged to roughly 2.34 million barrels per day in August, up from about 1.35 million bpd in July, according to two Iraqi energy officials. September exports are also expected to climb as heavy discounts and Iranian approvals for Iraqi tankers entice buyers.