Oil prices steadied on Friday after jumping more than 3% a day earlier. Traders remained cautious as they assessed US President Donald Trump’s threats against Iran and the risk that rising tensions could disrupt oil supplies from the Middle East.
West Texas Intermediate hovered near $66 a barrel following a three-day rally, supported in part by a weaker US dollar. Brent crude settled above $70 a barrel for the first time since July. Trump warned of possible military action if Iran fails to agree to a nuclear deal, adding fresh risk premiums to oil prices.
Strait of Hormuz in Focus
Markets are closely watching the Strait of Hormuz, a key shipping route between Iran and the Arabian Peninsula. Any escalation in tensions could affect the flow of oil and liquefied natural gas through the narrow passage, which is used daily by tankers supplying energy markets around the world.
According to a report by the Associated Press, Iran warned ships at sea on Thursday that it plans to conduct military drills in the strait on Sunday and Monday. The drills are expected to include live firing, citing two Pakistani security officials.
Oil Prices Today
WTI for March delivery rose 0.3% to $65.61 a barrel at 7:38 a.m. in Singapore.
Brent for March settlement climbed 3.4% on Thursday to close at $70.71 a barrel.
