Worldwide crude oil prices have climbed to their highest level in six months as investor fears intensified over possible US military strikes against Iran in the coming weeks, compounded by widening regional conflict across the Middle East.
On Friday, Brent crude futures advanced by 3.1 per cent, or $3.55, to settle at $116.72 a barrel, recording their highest finish since 29 April. US West Texas Intermediate (WTI) crude saw a similar surge of 3.8 per cent to conclude trading at $103.27 a barrel.
The steep rise marked the third successive week of gains across international benchmark contracts, with Brent posting a 6.2 per cent weekly climb and WTI expanding by 2 per cent.
Market sentiment turned decidedly bullish following escalated political rhetoric. US President Donald Trump said on Wednesday that Washington was not holding negotiations with Tehran, adding that “something will happen soon.”
International media, citing senior US officials, reported that the US and Israel are weighing joint targeted operations against Iranian assets following the upcoming US midterm elections.
Adding to market unease, Iranian media quoted the country’s military chief, who announced that Iranian forces are fully prepared for asymmetrical warfare after recent upgrades to their defence capabilities.
At the same time, persistent drone and missile strikes by Iran-backed Houthi rebels on energy targets in Saudi Arabia have heightened fears over supply vulnerabilities.
In response to the escalating threats, the US Department of State directed non-essential government personnel to evacuate Saudi Arabia.
According to Saudi state media, a drone strike on the eastern Shaybah oilfield on Wednesday left two people dead and two injured. A separate attack on King Fahd International Airport in Dammam killed at least two people and injured eight others.
Following the series of strikes, Saudi state energy giant Saudi Aramco instructed employees at its Dhahran headquarters to relocate to secure positions and switch to remote operations.
