Oil jumps 4.6% as US-Iran attacks threaten Hormuz and Red Sea
Why it matters: Brent settled at $88.10 and both crude benchmarks gained about 16% for the week as tanker traffic faced new risks.
Oil prices surged Friday after the United States and Iran widened attacks across the Gulf, deepening concerns about supply routes through the Strait of Hormuz and a possible disruption in the Red Sea. Brent crude settled up $3.87, or 4.59%, at $88.10 a barrel, while US West Texas Intermediate rose $3.54, or 4.48%, to $82.49, the highest levels for both since mid-June. Reuters reported that Iran told Houthi allies to be ready to close the Red Sea oil route if US strikes hit Iranian power infrastructure. The collapsed truce has already cut flows through Hormuz, which handled about 20% of global oil supplies before the war. Saudi Arabia has shifted much of its crude exports to Yanbu on the Red Sea, raising the stakes of any further disruption there.