Oil futures prices fell over 3% on Friday but are still set for hefty weekly gains because of concerns about disrupted energy flows in the Red Sea and fears of further escalation
Oil futures prices fell over 3% on Friday but are still set for hefty weekly gains because of concerns about disrupted energy flows in the Red Sea and fears of further escalation in the U.S.-Israeli war with Iran.
Brent futures LCOc1 fell nearly $4, or 3.96%, to $96.70 a barrel at 0946 GMT, having settled above $100 in the previous session for the first time since May after Iran-aligned Houthis said they struck two Saudi oil tankers in the Red Sea.
The contract remained on course for a 9.7% advance this week.
West Texas Intermediate (WTI) futures CLc1 were down $3.15 or 3.42% at $89.04 a barrel, on track for a nearly 8% weekly rise.
"Major hubs of oil production or supply routes are surrounded by war... The short-term outlook is bullish," said PVM Oil Associates analyst John Evans.
U.S. President Donald Trump promised "major military punishment" for Iran and its Houthi allies after the strikes in the Red Sea.
Iran had been pressing the Houthis to close the Bab el-Mandeb gateway to the Red Sea if the U.S. continued to attack Iranian power infrastructure. It is the second most important route for energy shipments after the Strait of Hormuz
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