Oil Prices Rise As Iran Conflict Continues To Tighten Global Energy Supplies

Global oil prices moved higher on Friday, with Brent crude approaching $107 a barrel and heading for a strong weekly gain as supply disruptions linked to the ongoing Iran conflict continued to tighten energy markets. US benchmark West Texas Intermediate (WTI) also remained elevated near $102 a barrel, reflecting mounting concerns over global crude availability and shipping risks in the Middle East.

Brent crude prices were up around 5 per cent for the week as traders reacted to persistent disruptions in the Strait of Hormuz, one of the world’s most critical maritime energy routes. The waterway, which connects the Persian Gulf to global oil markets, has remained heavily affected by the conflict involving Iran and the United States, significantly reducing normal trade flows and intensifying fears of prolonged supply shortages.

According to the International Energy Agency, global oil inventories fell at a record pace during March and April due to escalating supply disruptions from the Middle East. In its latest monthly report, the agency estimated that observed global stockpiles declined by roughly four million barrels per day across the two-month period. The IEA warned that oil markets could remain “severely undersupplied” until at least October even if the conflict eases in the coming weeks.

Also Read: Brent Crude Remains Above $104 Amid Fragile US-Iran Ceasefire Talks

The agency further estimated that cumulative supply disruptions since February have now reached 12.8 million barrels per day after an additional decline of 1.8 million barrels daily in recent weeks. Analysts said the market remains highly sensitive to any developments involving the Strait of Hormuz, where security concerns have continued following reports of a commercial vessel being seized near the entrance to the strategic waterway and taken into Iranian territory.

Geopolitical tensions have also kept attention focused on diplomatic efforts between Washington and Tehran. Although a ceasefire has technically remained in place since early April, repeated flare-ups and stalled negotiations have prevented meaningful de-escalation. Donald Trump recently described the ceasefire as being on “massive life support” while criticising Iran’s response to proposals aimed at ending the conflict.

Markets also monitored developments from Beijing, where Trump met Chinese President Xi Jinping during ongoing diplomatic talks. According to White House officials, the two leaders discussed the importance of keeping the Strait of Hormuz open to ensure stable global energy trade and explored opportunities for expanding US oil exports to China. While China’s official summary of the meeting confirmed discussions on the Middle East conflict, it did not specifically reference energy cooperation or oil supply issues.

Also Read: Brent Crude Near $98 As Trump Maintains Iran Truce But Keeps Hormuz Blockade