Oil prices eased on Friday, snapping multiday winning streaks for both Brent and West Texas Intermediate crude futures as traders engaged in profit-taking following a sharp weekly rally driven by escalating Middle East tensions. Despite the late-session retreat, both global benchmarks finished the five-day period with substantial weekly gains.
Weekly Gains Defy Late-Session Pullback
At 07:47 GMT on Friday, Brent crude futures fell $1.82, or 1.81%, to $98.87 per barrel. The downward move followed a surge in the previous session where Brent climbed more than 7% to cross the $100 per barrel mark for the first time since May. U.S. West Texas Intermediate (WTI) futures similarly moved lower on Friday, dropping $1.60, or 1.74%, to settle at $90.59 per barrel.
Despite Friday’s losses, both reference prices anchored global crude markets with strong performance across the week. Brent remained on course for a weekly advance of approximately 12%, while WTI was on track to finish the period nearly 9.7% higher. A winning streak in commodity futures indicates that a contract has closed at a higher price than the prior session on consecutive trading days, a pattern built earlier in the week before Friday’s reversal.
Geopolitical Risks and Shipping Disruptions
Market sentiment across the week remained heavily supported by growing geopolitical risks in the region and potential disruptions to global energy supplies. The sharp advances earlier in the week coincided with Iran-backed Houthi forces claiming responsibility for attacks on two Saudi oil tankers in the Red Sea.
In response to the maritime attacks, U.S. President Donald Trump warned of “major military punishment” against Iran and its Houthi allies. Reports indicated that Iran urged the Houthis to block access to the Bab el-Mandeb Strait should the United States continue targeting Iranian energy infrastructure. Shipping analytics company Kpler reported that only one oil tanker transited the critical Strait of Hormuz on Thursday, marking the lowest daily level recorded since May 7.
“Major hubs of oil production or supply routes are surrounded by war,” PVM Oil Associates analyst John Evans said, describing the short-term market outlook as bullish.
JPMorgan analysts estimated that every additional month of supply disruption could add between $7 and $8 per barrel to Brent prices, projecting that a three-month continuation could push average monthly prices to approximately $114 per barrel.
Simultaneous Pressures in Eastern Europe and Central Asia
Market uncertainty was further compounded by developments outside the Middle East. Russia’s military conducted overnight strikes targeting three Ukrainian ports, hitting infrastructure that included fuel storage facilities and cargo handling operations supporting Ukraine’s armed forces. Simultaneously, Kazakhstan’s energy ministry confirmed that oil producers temporarily reduced output following suspected Ukrainian drone attacks that forced the closure of the country’s main Black Sea oil export terminal.
Traders and analysts continue to monitor the intersection of these geopolitical conflicts and logistical bottlenecks as energy markets head toward the next trading cycle.
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