Oil prices declined modestly on Friday but remained close to six-week highs, with renewed hostilities between the United States and Iran keeping potential disruption to shipments through the Strait of Hormuz in focus.
At 03:47 ET (07:47 GMT), November Brent crude futures were down 0.5% at $95.09 a barrel, while WTI crude futures also fell 0.5% to $90.81 a barrel.
Despite Friday’s decline, Brent was on course to rise approximately 7% for the week, while WTI was heading for a gain of around 10%. Both contracts had reached six-week highs in the previous session.
U.S.-Iran Hostilities Keep Attention on Hormuz
The latest developments followed U.S. strikes against Iranian targets earlier in the week, including military assets located near the Strait of Hormuz.
Iran subsequently launched missile and drone strikes against U.S. and allied positions across the Gulf region, including Kuwait, Bahrain and Jordan.
Restrictions imposed by Iran on international shipping through the Strait of Hormuz have also expanded, raising concerns about the potential for continued disruption to oil flows through the waterway.
Civilian casualties have also been reported during the conflict. According to the supplied report, a U.S. strike reportedly hit an area where a wedding was taking place in southern Iran, killing civilians. Tehran condemned the attack.
U.S. Vice President JD Vance said on Thursday that Washington did not intend to hold talks with Iran unless Tehran stopped attacks on commercial shipping in the Strait of Hormuz.
“Escalation is propping up crude, but the rally may lose traction if Hormuz shipments keep moving smoothly,” ING analysts said in a note.
Lower U.S. Inventories Provide Additional Support
U.S. commercial crude inventories declined during the latest reporting week, providing another factor for oil markets.
Commercial crude stocks stood at approximately 424.5 million barrels in the week ended August 28, compared with 428.9 million barrels in the previous week, according to the Energy Information Administration.
The U.S. Strategic Petroleum Reserve was approximately 286.6 million barrels.
OPEC+ Meeting Approaches
OPEC+ is expected to maintain its existing oil production policy for October when members meet on Sunday, Reuters reported, citing sources.
The meeting takes place as the producer group completes the unwinding of one layer of its production cuts. Shipping disruptions through the Strait of Hormuz remain an additional consideration for global oil supply.
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