Oil prices on track for second straight weekly rise amid Mideast tensions

Oil prices are poised to rise for a second consecutive week amid escalating tensions between the United States and Iran in the Middle East. Brent crude futures fell 0.2% to $93.57 a barrel, while U.S. West Texas Intermediate crude futures dropped 0.4% to $86.50 a barrel, according to data reported on Friday. Despite this slight dip, crude was still on track for gains, with the Brent contract expected to climb more than 5% this week.

U.S. President Donald Trump has threatened to impose additional economic sanctions on Iran to compel the country to accept a peace deal. Trump warned of severe economic repercussions for nations engaging in trade with Tehran, with U.S. Treasury Secretary Scott Bessent reiterating Trump's comments on Thursday, emphasizing that Iran would face the "toughest sanctions in history." Iran, however, has largely dismissed such threats, as has China, one of Iran's largest crude buyers.

Deutsche Bank analysts noted in a client note that concerns over an energy shock are persisting in markets, driven by the ongoing standoff between the U.S. and Iran. The Strait of Hormuz, a critical waterway that has become a focal point of the tensions, saw minimal commercial traffic despite claims from the U.S. to the contrary. Iran has vowed to maintain the strait effectively closed until the U.S. complies with the terms of an interim peace deal signed in June, which has further disrupted regional oil supplies.