Oil Extends Gains as U.S.-Iran Truce Collapses and Red Sea Security Risks Increase

Oil prices edged higher on Friday as military tensions between the United States and Iran intensified across the Gulf, while reports of heightened security risks in the Red Sea added to concerns over global energy supply routes.

1. Brent crude: US$84.30/bbl (+0.08%)
2. WTI crude: US$79.11/bbl (+0.2%)

Both benchmarks have gained nearly 12% this week, with Brent recording a third consecutive weekly advance and WTI a second straight weekly gain.

Analysts assess expanding supply risks

Tim Waterer, Chief Market Analyst at KCM Trade, said concerns over potential disruptions in both the Strait of Hormuz and the Red Sea have contributed to a higher geopolitical risk premium in oil markets.

According to reports, regional security concerns have expanded beyond the Strait of Hormuz to include the Red Sea, raising the possibility of additional disruptions to maritime trade.

Military tensions remain elevated

According to U.S. Central Command, U.S. forces continued strikes targeting Iranian military facilities following intensified operations earlier in the week.

Iran has also reported missile and drone attacks targeting U.S. military facilities in the region, while Qatar said it intercepted an Iranian missile early Friday.

IEA highlights energy security

Speaking at a Council on Foreign Relations event on Thursday, IEA Executive Director Fatih Birol said:

"Oil security is still a critical issue."

He added that the situation would remain a concern if conditions fail to improve in the coming weeks.

Market outlook

According to IG analysts, price stability above the mid-US$70s would indicate that the current market structure remains supported, while geopolitical developments continue to influence market sentiment.