Oil prices recorded their biggest weekly gain since July despite a sharp decline on Friday, as the prolonged Iran war and rising threats to Saudi Arabia kept traders concerned about global supplies.
Brent crude fell 2.8% on Friday to settle at $104.61 a barrel, but gained 8.7% over the week. West Texas Intermediate (WTI) declined 2.4% to $100.05 a barrel.
The market remained under pressure from disruptions around the Strait of Hormuz, with Saudi Arabia temporarily closing its East-West oil pipeline as a precaution after Iran-backed Houthi militants advanced toward areas near the strategic Bab el-Mandeb Strait.
The International Energy Agency warned that supply disruptions and higher fuel prices could trigger the biggest annual contraction in global oil demand since the COVID-19 pandemic.
Although some tankers continue to move through the Strait of Hormuz, shipping remains vulnerable to attacks. Meanwhile, reports of possible diplomatic efforts to manage shipping through the waterway have added uncertainty to the market.
Brent has risen more than 70% this year, although it remains below its wartime peak of just above $126 a barrel reached in April. Analysts warned that a renewed Saudi-Houthi conflict could trigger further increases in oil prices.
