Oil heads for second weekly decline

Oil prices rose on Friday, but they are on track for a second consecutive weekly loss as fears of a direct conflict resumption between the United States and Iran have receded, given Washington’s focus on maintaining sanctions on the Islamic Republic and intensifying other economic pressures. However, ongoing attacks on maritime shipping continue to pose a risk to supply.

Brent crude futures rose 85 cents, or 0.9 percent, to $96.67 per barrel by 1414 GMT. In contrast, U.S. West Texas Intermediate (WTI) crude futures fell 44 cents, or 0.5 percent, to $89.18 per barrel.

Both Brent and WTI are set to record a decline of approximately 2 percent for the week. The two benchmark crudes fell 16 percent and 13 percent, respectively, last week.

Oil experienced a week of volatile trading, as Houthi attacks—carried out by the Iran-aligned Yemeni group—on Saudi infrastructure and on tankers transporting crude outside the Gulf dashed earlier hopes for a rapprochement in the U.S.-Israeli war on Iran, which has now entered its ninth month.

U.S. President Donald Trump stated on his Truth Social platform that reaching an agreement with Iran is not necessary to end the war.

Sujatha Sachdeva, founder of SS Wealth Street, a research firm based in New Delhi, said, “Trump’s signals that further military escalation against Iran may not be necessary have reinforced expectations that Washington may increasingly rely on economic sanctions and restrictions on oil shipments rather than intensifying military operations.”

The U.S. Energy Information Administration (EIA) reported on Thursday that U.S. crude oil and fuel inventories rose last week, driven by weak demand for refined petroleum products and a surge in oil imports.

Despite the price decline, risks remain to oil shipments through the Strait of Hormuz, a vital waterway for crude oil exports from major Middle Eastern producers.