Global crude oil prices surged to a six-month high as investor anxieties mounted over potential US military strikes against Iran in the coming weeks alongside escalating regional conflict in the Middle East.
Brent crude futures rose by 3.1 percent (+$3.55) to settle at $116.72 per barrel on Friday—the highest closing level recorded since April 29. US West Texas Intermediate (WTI) crude similarly jumped by 3.8 percent to close at $103.27 per barrel.
The sharp uptick marks the third consecutive week of gains across international benchmark contracts, with Brent logging a 6.2 percent weekly advance and WTI expanding by 2 percent.
Market sentiment turned sharply bullish following escalated political rhetoric. US President Donald Trump stated on Wednesday that Washington was not holding negotiations with Tehran, adding that "something will happen soon." Citing senior US officials, the global media reported that the US and Israel are considering joint targeted operations against Iranian assets following the upcoming US midterm elections.
Adding to market jitteriness, Iran’s media cited the nation's military chief asserting that Iranian forces are fully prepared for asymmetrical warfare following recent upgrades to defense capabilities.
Concurrently, persistent drone and missile strikes by Iran-backed Houthi rebels against energy targets in Saudi Arabia have heightened supply vulnerability fears. In response to the escalating threats, the US Department of State directed non-essential government personnel to evacuate Saudi Arabia.
According to Saudi state media, a drone strike targeting the eastern Shaybah oilfield on Wednesday left two people dead and two injured. A separate attack on King Fahd International Airport in Dammam killed at least two people and injured eight others.
Following the series of strikes, Saudi state energy giant Saudi Aramco instructed employees at its Dhahran headquarters to relocate to secure positions and transition to remote operations, reports UNB.