Oil set for second weekly rise as unsettled US-Iran war crimps supply

Oil prices edged little on Friday, but are poised to climb a second week as the ongoing U.S.-Iran conflict continues to hamper supply from the vital Middle East oil region. Brent crude futures rose 4 cents to $93.82 per barrel by 0142 GMT, up 2.4% from the previous session. U.S. West Texas Intermediate crude futures fell 6 cents to $86.78 per barrel, down 2.3% in the prior session.

Over the last five days, Brent surged more than 7%, while WTI climbed over 8%, reaching their highest since July 24. Concerns over the uncertain state of the U.S.-Iran war on Iran have driven prices higher, as major oil producers like Saudi Arabia, Iraq, the UAE, and Kuwait have curtailed output. The cease-fire between them ended this week without any attempts to resume negotiations, and U.S. President Donald Trump has threatened severe economic sanctions against nations supporting Iran.

Both sides are entrenched but short on time, as crude prices have steadily risen. On Wednesday, Trump threatened an unprecedented scale of economic warfare and isolation against Tehran, warning of consequences for any country providing assistance to Iran. The UAE suspended all financial and economic transactions with Iran until further notice, highlighting the strained relations between the major Gulf Arab oil producer and Tehran.

The Iran war, which began on February 28 with U.S. and Israeli military strikes on Iran, has resulted in thousands of deaths. Since then, Tehran's blockade of the Strait of Hormuz and Iranian attacks on energy infrastructure across the Middle East have disrupted global oil and gas flows. As of Wednesday, only nine vessels were transiting the Strait of Hormuz, far below pre-war levels. Before the Iran war, about one-fifth of global oil consumption passed through the waterway.