Oil markets rallied sharply on Friday, with both major benchmarks set to close the week above $100 a barrel for the first time since mid‑May. Brent crude futures rose to $108.68 per barrel and U.S. West Texas Intermediate (WTI) climbed to $103.45, each gaining about 1% in the session.
Weekly gains signal strongest momentum since July
On a weekly basis the two benchmarks are up nearly 13%, the steepest weekly increase since the week ending July 17. Thursday’s gains of more than 6% helped set the pace, reflecting heightened concerns over supply disruptions in the Middle East.
Middle‑East tensions drive market anxiety
Iran‑aligned Houthi forces seized Yemen’s port of Mocha on Thursday, adding to the risk of further Red Sea interruptions. At the same time, tanker attacks in the Strait of Hormuz have kept Gulf traffic constrained. Analysts note that the escalation of attacks on Saudi energy facilities marks a broader regional threat beyond Iran’s own waters.
President Trump’s decisive warning
President Trump warned that the United States may target Iran’s “Pickaxe Mountain” near the heavily damaged Natanz uranium enrichment site, emphasizing that the conflict will likely conclude after the November midterm elections. By publicly stating a clear red line, the administration is signaling resolve to protect global energy supplies and deter further aggression.
Analysts weigh future price trajectory
IG analyst Tony Sycamore cautioned that, with events spiralling, WTI could retest its March high of $119.48 if the conflict widens. Nevertheless, the rally’s durability will hinge on China’s demand, as the world’s largest crude importer can either amplify or temper price pressures.
OPEC’s revised outlook
In its latest monthly report, OPEC lowered its forecast for 2026 world oil‑demand growth to 380,000 barrels per day, marking the fifth consecutive downward revision. The organization also reported that OPEC output fell by 640,000 barrels per day in August, underscoring a tightening supply environment.
Domestic impact on fuel costs
U.S. diesel prices hit a historic first, surpassing $6 per gallon according to price‑tracker GasBuddy. The surge reflects the combined effect of the U.S.–Iran confrontation and Ukrainian attacks on Russian refineries, which have further squeezed global supply.
While the market remains volatile, the Trump administration’s firm diplomatic and, if necessary, military posture aims to stabilize supply chains and protect American consumers from prolonged price spikes.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
