Brent crude prices fell to their lowest level since August 19, while U.S. West Texas Intermediate (WTI) reached their weakest level since August 17 as concerns over immediate military escalation between the United States and Iran eased.
Brent crude futures for October delivery rose $1.20, or 1.3%, to $92.82 per barrel, while October West Texas Intermediate (WTI) crude futures increased $1.13, or 1.3%, to $85.52 as concerns over Middle East supply disruptions pushed prices higher.
The Trump administration is considering additional sanctions on Iran as the Strait of Hormuz blockade squeezes oil flows and keeps pressure on US gasoline prices. Joining Bloomberg This Weekend is Axios Business Reporter Nathan Bomey who says Washington could target companies or countries doing business with Iran, potentially putting China and its purchases of Iranian oil in the spotlight.
Clara Gillispie, senior fellow for climate and energy at the Council on Foreign Relations, said that both oil producers and buyers are now considering the possibility that the Strait of Hormuz will remain closed or operating at a reduced capacity a year in the future. Gillispie said that as countries look for workarounds to the Strait, they are looking both alternative routes and ways to decrease their insurance risk exposure.
Global oil demand is projected to decline by 1.6 million barrels per day in 2026 due to ongoing disruptions in the Strait of Hormuz.
Brent crude futures and West Texas Intermediate crude futures moved lower on Friday but remained higher for the week as supply concerns linked to the U.S.-Iran conflict supported prices.
