Oil prices rose in early trading on Friday, driven by renewed concerns over supplies from Saudi Arabia following attacks on energy infrastructure in the Kingdom, while tanker traffic through the vital Strait of Hormuz remained largely halted.
Despite the increase, prices are still heading toward weekly losses amid easing tensions surrounding the fragile ceasefire between the United States and Iran. Israel has also signaled a potential opening for diplomacy, stating it is ready to begin direct talks with Lebanon as soon as possible.
As of 06:04 GMT, Brent crude futures climbed by 96 cents, or 1%, to $96.88 per barrel.
U.S. West Texas Intermediate crude futures rose by 78 cents, or 0.80%, to $98.65 per barrel.
Both benchmarks have lost around 11% since the start of the week, marking the largest weekly decline since June 2025, when previous U.S.-Israeli strikes on Iran came to a halt.
According to the Saudi Press Agency, citing an official source at the Ministry of Energy, attacks on energy facilities in the Kingdom caused a drop in production of about 600,000 barrels per day and reduced crude flow عبر the East-West pipeline by roughly 700,000 barrels per day.
Analysts at ANZ said in a note on Friday that concerns over further disruptions to oil supplies intensified following the report.
Ship traffic through the Strait on Thursday was less than 10% of normal levels despite the ceasefire, as Tehran asserted control by warning vessels to remain within its territorial waters during transit.
Iran and the United States agreed on Tuesday to a two-week ceasefire brokered by Pakistan, but hostilities have continued since the announcement.
Analysts say Pakistan will attempt to push for a more sustainable peace agreement during talks, though it may lack sufficient leverage to compel Iran to reopen the strategic Strait of Hormuz.
A source in Tehran told Reuters on April 7 that Iran wants to impose fees on vessels passing through the Strait under any peace agreement, a proposal rejected by Western leaders and the International Maritime Organization.
The conflict has effectively shut down this vital route for global oil and gas flows since February 28, when the United States and Israel launched airstrikes on Iran.
John Paisie, president of Stratas Advisors, said Brent crude prices could reach $190 per barrel if flows through the Strait of Hormuz remain at current levels.
“If Iran allows flows to increase, oil prices would moderate, but they would still remain well above pre-war levels,” he added.
JPMorgan estimates that around 50 infrastructure facilities in the Gulf have been damaged by drone and missile attacks over roughly six weeks since the conflict began, with about 2.4 million barrels per day of refining capacity disrupted.
Reuters
