Oil Near $100 as Iran Tensions Persist Despite Ceasefire
Oil Near $100 as Iran Tensions Persist Despite Ceasefire
Oil climbs toward $100 amid strikes on Saudi facilities and Hormuz disruptions, with a fragile Iran-U.S. ceasefire keeping traders on edge.
Oil prices climbed again as markets weighed fresh attacks on Saudi energy infrastructure, ongoing disruptions in the Strait of Hormuz, and a fragile Iran-U.S. ceasefire. Brent crude rose to around $96.75 a barrel, while West Texas Intermediate hovered near $98.90 in early Friday trading. The security risks have reinforced concerns about global supply, as ship traffic through Hormuz remained severely disrupted, operating at less than 10% of normal levels.
Roughly 50 energy assets across the Gulf have been hit in the past six weeks, knocking offline about 2.4 million barrels per day of refining capacity, a factor cited by analysts as support for higher prices. Even with the ceasefire in place, market watchers say the supply risk persists and could push prices higher if disruptions continue.
In Washington, comments from leaders and continuing warnings have kept traders wary. A public post from a U.S. figure suggested that military assets would remain on standby around Iran until a final agreement is honored, underscoring the political fragility surrounding any lasting settlement.
Analysts at Macquarie emphasize that even if tensions ease, oil prices are likely to stay supported in the $85 to $90 range, with a potential gradual move toward $110 if flows through the Strait of Hormuz do not normalize. These expectations reflect stubborn risk premia tied to geopolitical risk rather than pure supply-demand dynamics.
Across markets, Asia-Pacific stocks opened higher as traders weighed the Iran-U.S. ceasefire against ongoing risk in the energy corridor. In late trading, U.S. benchmark WTI was around $98.5 a barrel and Brent hovered near $95.9, illustrating how regional risk sentiment translates into near-term price action.
What this means for consumers and energy supply is that volatility may persist in the near term, with traders continuing to monitor geopolitical signals and any signs of disruption to crude flows.
