Oil heads for weekly gains amid stalemate between US and Iran

Oil prices saw little change on Friday but are on track to post a second consecutive weekly gain, as a stalemate between the United States and Iran continues to disrupt supplies from the Middle East.

By 01:42 GMT, Brent crude futures rose four cents to $93.82 a barrel, after climbing 2.4 percent in the previous session.

Over the past five days, Brent crude has risen by more than 7 percent, and U.S. crude by more than 8 percent, reaching their highest levels since July 24.

Prices have risen due to concerns that the unresolved U.S.-Israeli conflict with Iran could lead to continued disruptions in supplies from major oil-producing nations.

A memorandum of understanding between Tehran and Washington expired this week without either side making efforts to resume talks. U.S. President Donald Trump has threatened economic measures against countries supporting Iran.

IG analyst Tony Sycamore said, “Both sides are sticking to their positions, but neither can afford to play a waiting game amid rising crude oil prices.”

On Wednesday, Trump threatened to launch an “economic war and impose unprecedented isolation” on Tehran, warning of consequences for any country’s economy that provides “any kind of assistance to Iran.”

This week, the UAE suspended all financial and economic transactions with Iran indefinitely, highlighting the strained relations between the two countries.

Preliminary shipping data showed that the number of vessels transiting the Strait of Hormuz fell on Thursday compared to the previous day, amid growing concerns over risks to navigation in the Middle East and the stalemate in U.S.-Iran talks.

According to data from Kpler, the total number of cargo ships reached seven on Thursday, half the number recorded on Wednesday. Four vessels entered the waterway, and three departed.

No large oil tankers or liquefied natural gas carriers were among these vessels.