Brent and WTI crude gain over 1% after US strikes in Iran and neighboring countries, but broader risk appears priced in.
Crude oil prices edged higher Friday, with Brent rising $1 to $85 a barrel and WTI climbing a similar amount to $80, as US-Iran tensions escalated across multiple countries. The gains followed overnight US airstrikes in Iran, Jordan, Bahrain, and Kuwait, including targets near Bandar Abbas and a railway station linked to Iranian military logistics.
Both benchmarks are up nearly 12% this week, with Brent on track for a third consecutive weekly gain and WTI for its second. The market’s muted reaction suggests investors have largely factored in the risk of a widening conflict, though structural concerns over potential chokepoint disruptions persist.
Despite the overnight escalation, the modest price movement indicates that further headline-driven spikes may fade unless physical supply constraints materialize. The Hormuz truce remains fragile, and Iran’s readiness to disrupt Red Sea shipping continues to underpin a risk premium.