Oil prices surge as US-Iran tensions raise supply concerns

Image- Collected

Global crude oil prices surged to a six-month high on Friday as concerns over possible US military action against Iran and escalating tensions in the Middle East heightened fears of supply disruptions.

Brent crude futures rose 3.1 per cent, gaining $3.55 to settle at $116.72 per barrel, marking their highest closing level since April 29. US West Texas Intermediate (WTI) crude also climbed 3.8 per cent to close at $103.27 per barrel.

Both international benchmarks recorded gains for a third consecutive week. Brent advanced 6.2 per cent over the week, while WTI rose 2 per cent.

Market concerns intensified after US President Donald Trump said on Wednesday that Washington was not negotiating with Tehran, adding that “something will happen soon”. International media, citing senior US officials, reported that the United States and Israel were considering joint targeted operations against Iranian assets after the upcoming US midterm elections.

Iranian media, meanwhile, quoted the country’s military chief as saying Iranian forces were fully prepared for asymmetric warfare following recent improvements in defence capabilities.

Supply concerns also grew amid continued drone and missile attacks by Iran-backed Houthi rebels on energy targets in Saudi Arabia. In response to the escalating threats, the US State Department ordered non-essential government personnel to leave Saudi Arabia.

Saudi state media reported that a drone strike targeting the Shaybah oilfield in eastern Saudi Arabia on Wednesday killed two people and injured two others. A separate attack on King Fahd International Airport in Dammam reportedly killed at least two people and injured eight.

Following the attacks, Saudi Aramco, the state-owned energy giant, instructed employees at its Dhahran headquarters to move to secure locations and switch to remote work.