HG MARKETS: 

Oil prices eased slightly on Friday but remained on track for a strong weekly gain as escalating tensions between the United States and Iran increased concerns over potential disruptions to Middle East oil supplies. Brent crude futures fell 0.49% to around $95.05 per barrel, while U.S. West Texas Intermediate (WTI) declined 0.70% to $90.66.

Despite Friday’s decline, Brent crude was heading for a 6.5% weekly increase, marking its strongest weekly performance since August 17. WTI was also set for an 8.8% weekly gain, its biggest rise since July 13, reflecting growing geopolitical risk and concerns over future supply availability.

Tensions intensified following U.S. attacks that reportedly killed and injured dozens of people, including Iranian civilians. Israel also renewed threats to target Iran’s military and civilian infrastructure, including energy facilities, further increasing fears that the conflict could affect regional oil production and exports.

Market concerns have also focused on the Strait of Hormuz, a critical global oil shipping route. Preliminary shipping data showed that only four commodity vessels passed through the strait on Thursday, compared with nine the previous day and a 10-day average of around 15 vessels, highlighting the growing uncertainty surrounding oil transportation.

Meanwhile, analysts have become more bullish on crude prices as supply disruption risks increase. Citi raised its third-quarter Brent forecast to $86 per barrel, while ANZ lifted its short-term forecast to $95, with further upside possible if tensions escalate. Rising risks around the Strait of Hormuz, combined with attacks on Russian refineries, have also pushed U.S. diesel prices to record highs.