Crude Oil Holds Strong Weekly Gain Despite Friday Pullback

Key Moments

Brent crude futures were lower by 3.3% at $97.39 a barrel, while U.S. WTI futures declined 2.6% to $89.78 a barrel.
Brent remained up more than 9% over the past week, positioning the benchmark for a third consecutive weekly advance.
U.S. military strikes on Iranian targets and Iran’s rejection of a U.S.-backed ceasefire proposal have kept supply risks elevated.

Prices Ease Intraday but Weekly Advance Remains Intact

Oil futures moved lower on Friday, but both major benchmarks were still on course for a substantial weekly rise as the conflict in the Middle East continued to disrupt supply routes with little indication of improvement.

By 10:07 ET (14:07 GMT), Brent oil futures, the global benchmark, had fallen 3.3% to $97.39 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were down 2.6% at $89.78 a barrel.

Even with Friday’s retreat, the Brent contract was trading more than 9% higher over the past week, leaving it set for a third straight week of gains.

Market Snapshot

Contract	Price	Move on the day	Recent performance
Brent oil futures	$97.39/barrel	-3.3%	More than 9% higher over the past week; on track for third consecutive weekly gain
U.S. WTI crude futures	$89.78/barrel	-2.6%	Supported by supply concerns linked to Middle East tensions

Escalating Military Tensions Around Key Energy Corridors

The U.S. military stated that it had completed a 13th consecutive wave of strikes on Iranian targets early on Friday, as tensions between Washington and Tehran showed few signs of cooling.

U.S. forces targeted Iranian military infrastructure, including drone storage facilities and coastal surveillance positions. The operations were described as aimed at weakening Iran’s capacity to attack commercial shipping in the Strait of Hormuz, a critical transit route for global crude flows that Iran has effectively kept closed for months.

Diplomatic efforts faced a setback as well. Iran rejected a U.S.-backed ceasefire plan conveyed by Iraqi Prime Minister Ali al-Zaidi, The New York Times reported on Thursday, citing Iranian and Iraqi officials. According to the report, Tehran refused to accept a temporary agreement that did not address the issue of control over the Strait of Hormuz, which is described as one of the world’s key oil transportation chokepoints. The report said this was the only ceasefire proposal currently under active discussion.

Risk Spreads to Additional Maritime Routes

Earlier in the week, U.S. President Donald Trump cautioned about the prospect of “major military” action against Iran and the Houthis after the Yemeni group said it had attacked two Saudi oil tankers in the Red Sea. The incident raised the possibility of an additional flashpoint near the Bab el-Mandeb Strait, a narrow sea lane connecting the Red Sea with the Gulf of Aden.

Concerns that crude flows could be threatened both in the Strait of Hormuz and in the Bab el-Mandeb Strait drove a sharp move higher in prices. Brent at one point briefly touched $100 a barrel, marking the first time it had reached that level since May.

“The most obvious impact of the escalation could be seen in energy prices,” analysts at Deutsche Bank said in a note.

Volatility Returns After Short-Lived Ceasefire

Oil markets have experienced pronounced swings in recent weeks as participants tried to keep pace with changing developments in the Middle East. Following the signing of an interim – and apparently short-lived – ceasefire agreement between the U.S. and Iran in June, Brent prices at one stage were trading near pre-war levels of about $70 a barrel.

Since then, the renewed escalation around major shipping lanes and the breakdown of ceasefire efforts have pushed prices sharply higher again, underpinning the strong weekly performance despite the latest session’s pullback.