Oil prices were broadly unchanged on Friday, with both Brent and WTI remaining on course for healthy weekly gains as markets continued to assess renewed hostilities between the United States and Iran while betting that the conflict will not significantly disrupt crude exports from the Persian Gulf.
At 14:18 ET (18:18 GMT), U.S. West Texas Intermediate (WTI) crude futures slipped 0.1% to $72.01 a barrel, while Brent crude futures edged 0.07% lower to $76.25 a barrel.
Although prices eased slightly during Friday’s session, Brent was still set to finish the week around 5% higher and WTI roughly 4% higher after attacks near the Strait of Hormuz briefly reignited supply concerns. Those fears have since moderated as investors increasingly expect the latest military confrontation to remain contained.
Shipping Risks Continue to Drive Market Attention
Thursday saw another round of U.S. airstrikes against Iranian military positions, with Washington saying the operation was intended to reduce threats to commercial shipping in the Strait of Hormuz.
Iran responded by launching missile and drone attacks against U.S.-aligned nations, including Bahrain, Kuwait, Qatar and Jordan, in one of the largest military exchanges since the temporary agreement reached last month.
The escalation followed attacks on commercial vessels earlier this week that prompted some shipping companies to postpone or reconsider voyages through the Strait of Hormuz. While tanker traffic has improved since the June agreement reopened the passage, shipping activity remains below normal as insurers and operators continue to evaluate regional security risks.
President Donald Trump said attacks on commercial vessels had effectively ended the ceasefire and warned that any further action against shipping would prompt a stronger U.S. response. At the same time, diplomatic talks continued, with Iranian Foreign Minister Abbas Araghchi meeting officials from Saudi Arabia, Oman and Turkey in an effort to contain the crisis.
Analysts See Limited Supply Risks for Now
Analysts at IG said in a note that oil’s relatively modest price reaction suggests investors believe the conflict is unlikely to develop into a broader regional war.
The brokerage noted that U.S. military operations have focused on Iranian military facilities rather than oil production or export infrastructure, while Gulf crude shipments have continued largely without interruption.
IG added that oil prices would likely move significantly higher only if the United States imposed tighter sanctions on Iranian crude exports or if the conflict directly affected energy infrastructure or shipping through the Strait of Hormuz.
For now, resilient exports and the continued movement of commercial vessels through the region are helping to limit additional price gains despite elevated geopolitical uncertainty.
Markets will continue monitoring military developments over the weekend, tanker movements and any signs of slowing crude exports from the Gulf.
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