Iran’s drone attacks on U.S. military sites in the Gulf region heighten supply disruption fears, lifting crude prices.
Oil prices edged higher Friday after Iran launched precision drone strikes on U.S. military bases in Kuwait and Bahrain. The attacks targeted the Ahmad al-Jaber Air Base in Kuwait, escalating tensions in the Middle East and dimming hopes for near-term diplomatic resolution.
Earlier this week, markets had priced in a potential de-escalation following indirect talks. Brent crude and WTI both climbed 0.8% in early trading, reversing losses from the prior session.
Traders are monitoring the risk of further retaliation, which could disrupt shipping lanes in the Strait of Hormuz, a critical chokepoint for global oil flows.