According to KhabarOnline, Brent crude, the international benchmark, rose 10 cents, or 0.14 percent, to $71.76 per barrel. U.S. West Texas Intermediate (WTI) crude gained 8 cents, or 0.12 percent, to trade at $66.48 per barrel.
Market Caught Between Risk and Uncertainty
Both benchmarks spent much of Friday’s trading session in negative territory, as markets awaited further developments in the standoff between Washington and Tehran. Analysts say investors are caught between the possibility of a geopolitical escalation and skepticism over whether a military confrontation will actually materialize.
Oil prices have climbed more than 5 percent over the past week, reflecting heightened geopolitical risk premiums.
U.S. President Donald Trump warned that “bad things” would happen if no agreement is reached to halt Iran’s nuclear program. In response, Iran’s foreign minister said Tehran would present a draft counterproposal in the coming days. Meanwhile, Trump has reportedly indicated that limited military strike options are under consideration.
Strategic Importance of the Strait of Hormuz
Iran, a major oil producer, is located on the northern shore of the Strait of Hormuz, opposite Saudi Arabia. The strait is a critical maritime chokepoint through which roughly 20 percent of global oil supply passes.
Any military confrontation in or around this corridor could significantly disrupt supply flows, potentially driving prices higher.
U.S. Inventory Draw Supports Prices
On the supply side, the U.S. Energy Information Administration (EIA) reported that U.S. crude inventories fell by 9 million barrels last week, driven by higher refinery runs and increased exports. The sharp drawdown has provided additional support to prices.
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