Brent oil at highest since early May as Iran says ready for warfare
Brent futures were on track for a third straight weekly gain, while WTI headed for a weekly decline as traders monitored Middle East tensions and attacks.
At a glance
- Brent futures were on track for a 3.3% weekly gain, their third straight weekly rise, and traded at their highest since early May.
- U.S. WTI futures were on track for a 1.1% weekly decline, set to snap two consecutive weeks of gains.
- Iran's IRGC said four vessels were struck and caught fire in the Persian Gulf and three hit mines in the Strait of Hormuz, per Tasnim.
Oil prices were mixed on Friday, with Brent crude futures on track for a 3.3% weekly gain and trading at their highest level since early May, while U.S. West Texas Intermediate futures were set for a 1.1% weekly decline. Brent was heading for a third consecutive week of gains, while WTI was set to snap two straight weeks of gains, CNBC reported.
Trump accuses Iran
On Thursday, U.S. President Donald Trump accused Iran of lying about attacks on ships transiting the Strait of Hormuz. In a Truth Social post, Trump said Iran was trying to drive up oil prices before the U.S. midterm election and was "making up fake hits, mines, and everything else." He also said more oil was moving through the Strait of Hormuz than before the conflict began.
Iran reports vessel attacks
Iran's Islamic Revolution Guards Corps said Thursday that four vessels were struck and caught fire in the Persian Gulf, according to the Iranian state-affiliated Tasnim news agency. The IRGC also said three more vessels struck mines in the Strait of Hormuz. Separately, Iran's army chief was reported to have said the country's military is fully prepared for "asymmetric warfare" after strengthening its capabilities.
Aramco evacuates headquarters
In Saudi Arabia, oil giant Saudi Aramco reportedly told staff to evacuate its Dhahran headquarters and work remotely following a series of attacks by Iran-backed Houthi rebels, Reuters reported. The Houthis have launched strikes on Saudi airports and some Aramco offices in recent weeks, resulting in multiple fatalities.
The competing claims and attacks have kept attention on the Strait of Hormuz, a key route for oil shipments. Brent's move to its highest level since early May reflects the market's response, while WTI's expected weekly loss shows the two benchmarks are not moving in lockstep.
Source: CNBC Top News.
Questions and answers
- Why is Brent crude at a five-month high?
- Brent futures were on track for a 3.3% weekly gain, their third straight weekly rise, as traders monitored Middle East tensions and attacks on shipping.
- What did Trump say about Iran and oil prices?
- Trump accused Iran of lying about attacks on ships in the Strait of Hormuz and said on Truth Social that Iran was trying to drive up oil prices before the U.S. midterm election.
- What happened at Saudi Aramco?
- Saudi Aramco reportedly told staff to evacuate its Dhahran headquarters and work remotely after a series of attacks by Iran-backed Houthi rebels, Reuters reported.
