Oil prices in international market remained elevated on Friday as traders weighed the potential impact of heightened tensions in the Middle East on energy supplies and maritime trade.
Brent crude continued to trade above the $100-a-barrel mark, reflecting sustained market concerns over possible disruptions to shipping through the Red Sea.
The benchmark was quoted at $101.06 a barrel in early trading, extending gains after closing above $100 in the previous session for the first time since May. Brent was also on track to post a weekly increase of about 14.6%, marking a fourth consecutive week of gains.
The market’s latest advance followed claims by Houthi fighters that they had targeted two Saudi oil tankers in the Red Sea, raising fresh concerns over the security of a key global shipping route.
Meanwhile, U.S. benchmark West Texas Intermediate (WTI) crude held near $91.20 a barrel. Although trading was largely steady, the contract remained at its highest level since June 11 and was set for a weekly gain of approximately 11.8%.
On the other hand, US President Donald Trump has threatened “major military punishment” against Iran and its Houthi allies after the Yemeni group said it struck two Saudi oil tankers in the Red Sea, expanding tensions to a second major shipping chokepoint in the Middle East.
The Houthis, who control northern and western Yemen, said they carried out the strikes on Thursday and were imposing a naval blockade on Saudi Arabia. The group said Saudi Arabia had diverted millions of barrels of oil each day by pipeline to the Red Sea to bypass Iran’s blockade in the Strait of Hormuz.
Responding on social media, Trump said the United States would hold Iran responsible for any future attacks by the Houthis.
“If they do this again, the U.S. will hold Iran responsible, in that the Houthis are a Surrogate and/or Proxy of Iran, and major military punishment will be inflicted upon Iran and, of course, the Houthis, themselves,” Trump wrote.
Trump also told Axios he was considering re-launching major combat operations in Iran and was close to making a decision. “They haven’t received enough pain yet,” the outlet quoted him as saying.
In a separate social media post, Trump said “any and all damages done” to cargo ships would be paid for with “Iranian Money,” referring to frozen Iranian assets held by the United States, without explaining how the funds would be used.
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