Oil Prices Jump 7% on US‑Iran Tensions

Oil Prices Jump 7% on US‑Iran Tensions

Oil prices rose in Asian trading on Friday, with Brent crude futures for November delivery edging up 0.2% to $95.67 per barrel and West Texas Intermediate (WTI) futures gaining 0.3% to $91.58 per barrel. These moves positioned Brent for an approximate 7% weekly increase and WTI for a roughly 10% weekly surge, each having touched six‑week highs in the prior session.

The price rally is driven by renewed military hostilities between the United States and Iran. Earlier in the week the United States carried out strikes on Iranian targets, including assets near the Strait of Hormuz. Iran retaliated with missile and drone attacks on U.S. and allied positions across the Gulf region, notably in Kuwait, Bahrain and Jordan. Tehran also expanded restrictions on international shipping through the Strait of Hormuz, heightening concerns that disruptions could persist and tighten global oil markets. A U.S. strike reportedly hit a venue hosting a wedding in southern Iran, causing civilian casualties and prompting Tehran to condemn the attack.

U.S. Vice President JD Vance told reporters that the United States would not engage in talks with Iran unless Tehran ceased attacks on commercial shipping in the Strait of Hormuz.

On the supply side, U.S. commercial crude inventories fell to about 424.5 million barrels for the week ended 28 August, down from 428.9 million barrels the week before, according to the Energy Information Administration. The U.S. Strategic Petroleum Reserve stood at roughly 286.6 million barrels.

OPEC+ is expected to keep its October oil‑output policy unchanged when the producer group meets on Sunday, Reuters reported citing sources. The meeting follows the group’s completion of the unwinding of one layer of production cuts, although the ongoing Hormuz disruptions have reduced the immediate impact of its output decisions on market prices.