Oil climbs on tanker attacks, US-Iran claims about Hormuz control

Crude oil futures surged more than $1 per barrel on Friday amid attacks on tankers and the absence of a peace deal between the United States and Iran. Brent and U.S. West Texas Intermediate crude futures climbed to $88.52 and $82.40 per barrel, respectively, marking weekly gains of 6.0 percent and 5.4 percent. Andrew Lipow, president of Lipow Oil Associates, attributed the rally to the recent attacks and the lack of progress on a cease-fire agreement.

A potential "day of reckoning" looms if the Strait of Hormuz remains restricted, as it accounts for 20 percent of global oil transportation. The U.S. has threatened to maintain a naval blockade on Iran and intensify economic pressure if ceasefire talks fail. Shipping traffic through the strait also dropped below the monthly average following attacks on Iranian vessels.

The surge in oil prices was primarily driven by the attacks, with Russian oil exports from the Sheskharis terminal suspended following a drone attack. Despite weaker-than-expected demand growth and rising U.S. crude inventories, some analysts anticipate oil prices may still fall due to improved storage conditions.