Oil rises as Gulf tensions deepen

Highlights

Brent traded at $84.63, up 0.47%.
WTI rose 0.85% to $79.62.
Both benchmarks are up nearly 12% this week.
Traders are watching Hormuz and Red Sea risks.

Brent crude futures for September traded at $84.63 a barrel, up 0.47%, while U.S. West Texas Intermediate futures for August rose 0.85% to $79.62. Both benchmarks have climbed nearly 12% this week as renewed U.S. strikes, Iranian retaliation, and reduced flows through the Strait of Hormuz raised supply concerns, Reuters reported.

Hormuz risk keeps crude supported

The latest move in oil follows a sharp escalation in the Gulf. The U.S. launched two major waves of airstrikes on Wednesday, the first such one-day escalation since a memorandum of understanding paused fighting last month. Strikes continued Thursday, with U.S. Central Command saying American forces began another wave of attacks to degrade Iranian military capabilities.

Iran has responded with missiles and drones aimed at U.S. military bases in nearby countries. Qatar’s defense ministry said its forces thwarted an Iranian missile attack early Friday, while the interior ministry said a child was injured by shrapnel from interception operations.

The renewed fighting has limited oil flows through the Strait of Hormuz, one of the world’s most important energy chokepoints. The waterway is critical for crude and liquefied natural gas exports from Gulf producers, meaning even partial disruption can affect prices, insurance costs, and shipping decisions.

Red Sea threat adds a second front

The risk is no longer focused only on Hormuz. Iran’s leadership has told its Houthi allies to be ready to close the Red Sea oil route if the U.S. strikes Iranian power infrastructure.

That possibility would complicate the global supply picture. The Red Sea route is a key corridor for energy and goods moving between Asia, Europe, and the Middle East. A threat to both Hormuz and Red Sea shipping would leave traders pricing a broader disruption risk rather than a single regional flashpoint.

Tim Waterer, chief market analyst at KCM Trade, said the possibility of the Red Sea becoming another supply disruption point was adding to uncertainty and keeping a geopolitical premium in oil.

Energy security returns to the center

The rally shows how quickly military escalation can feed into inflation-sensitive commodities. Brent near $85 a barrel is not a full supply shock, but it reflects a market preparing for tighter flows if attacks expand or shipping routes become harder to insure.

International Energy Agency Executive Director Fatih Birol said oil security remains a critical issue and warned that the market should be worried if the situation does not improve in the coming weeks. That concern is now central to pricing: crude is rising not because demand has suddenly strengthened, but because the cost of geopolitical risk is increasing.

We also reported U.S.-Iran conflict widens as Hormuz shipping traffic falls.

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