Crude oil rose strongly this week despite controlled tensions between the United States and Iran

TLDR

Contents

TLDR

Washington launches air strike, Tehran fights back

Traders believe the risks to oil transportation are minimal

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Brent crude is expected to rise about 5% this week, and West Texas Intermediate crude is up about 4%, although markets are not volatile on Friday.

Washington launched further air strikes on Iran\'s military infrastructure on Thursday aimed at ensuring the safety of navigation in the Strait of Hormuz.

Tehran attacked Bahrain, Kuwait, Qatar and Jordan with missiles and drones. [TAG

President Trump announced that the fragile ceasefire agreement has basically broken down after the attack on merchant ships.

Traders expect that the conflict will remain limited in scope and that oil shipments in the Persian Gulf will remain largely unaffected.

Benchmark crude oil prices remained stable on Friday, but oil prices are expected to end the week with a sharp rise as the renewed conflict between Washington and Tehran earlier this week rattled energy traders.

U.S. West Texas Intermediate crude fell slightly 0.1% to US$72.01 a barrel in Friday trading. Brent crude fell 0.07% to close at $76.25 a barrel. Despite Friday\'s lackluster performance, both benchmark crude oil prices are expected to rise strongly this week-Brent crude oil up about 5% and West Texas Intermediate crude oil up about 4%.

Brent Crude Oil Last Trading Day Financial Contract

This week\'s price rise was driven by the escalation of conflicts around the Strait of Hormuz, one of the world\'s most important oil transportation corridors. Recently, merchant ship attacks on and near this strategic waterway have caused many shipping companies to postpone or cancel their scheduled trips.

Washington launches air strikes, Tehran retaliates

On Thursday, the United States launched a new round of air strikes on military facilities in Iran. U.S. officials said the actions were aimed at undermining Iran\'s ability to endanger the safety of commercial navigation in the Strait of Hormuz.

Update: The United States launches second strike against Iran

The United States launched a second strike against Iran within 24 hours, attacking about 90 targets. Iran has previously attacked ships in the Strait of Hormuz and intensified its crackdown in the region. Iran also launched missiles and drones...

Tehran used ballistic missiles and drones to counterattack against multiple Washington allies, including Bahrain, Kuwait, Qatar and Jordan. Market observers said it was one of the largest military conflicts since a temporary ceasefire was reached last month.

U.S. President Donald Trump has announced that attacks on merchant ships have effectively terminated the ceasefire. He warned that if Iran attacked ships again, the United States would respond more violently.

Diplomatic engagement continues despite Trump\'s warnings. Iranian Foreign Minister Abbas Araghi held talks with officials from Saudi Arabia, Oman and Turkey in an attempt to avoid a broader regional conflict.

Traders believe the risks to oil transportation are minimal.

IG analysts pointed out in their assessment that the mild reaction from oil prices suggests the market is increasingly confident that conflicts will remain within limits and will not turn into a long-term regional emergency.

They emphasized that the U.S. military operations focused on Iran\'s defense facilities and avoided oil production or export infrastructure. Oil shipments in the Persian Gulf have been largely uninterrupted.

Since the June agreement reopened the channel, tanker traffic through the Strait of Hormuz has steadily rebounded. However, traffic remains below pre-conflict levels as insurance companies and ship operators are still assessing risks.

IG said that if Washington imposes stricter restrictions on Iranian oil exports, or if the fighting directly affects energy infrastructure or sea lanes, then the main driver of higher oil prices will emerge.

Currently, transportation in the Gulf remains stable and the region is reluctant to interrupt commercial shipping activities, which helps limit further increases in oil prices.

Traders are now closely monitoring developments over the weekend, including potential military action, tanker activity patterns and whether Persian Gulf crude oil exports may begin to show signs of delays.