Oil prices rose and are on track for weekly gains as supply risks in the Middle East persist
Oil prices are on track for weekly gains as supply risks in the Middle East persist following renewed clashes between the US and Iran, which have restricted shipments through the Strait of Hormuz.
Brent futures rose 19 cents, or 0.25%, to $76.49 a barrel as of 03:19 GMT. WTI also rose 19 cents, or 0.26%, to $72.27.
Weekly, Brent is expected to rise by approximately 6%, and WTI by 5%.
Prices have retreated from mid-week highs, but a significant risk premium remains due to the near-complete halt of Hormuz transits and the lack of a clear indication of when it will reopen and return to normal.
However, indications that the US and Iran will return to diplomacy to resolve the issue are limiting the market's upward movement.
The three-week ceasefire was broken on Thursday when Iranian armed forces launched attacks on US military infrastructure in Gulf countries following US attacks on Iran's southern coastal and eastern provinces.
Iranian media reported numerous explosions in southern Iran, including in Bushehr, where one of the country's nuclear power plants is located.
The renewed fighting occurred on the same day Iran buried its slain Supreme Leader Ayatollah Ali Khamenei.
The renewed fighting delayed the full reopening of the Strait of Hormuz, which, before the war, carried about 20% of the daily global supply of oil and natural gas.
Tanker traffic through the strait nearly came to a standstill on Thursday as the risk stemming from the latest attacks, which began after Iran attacked a Qatari LNG ship leaving the strait near Oman, was assessed.
Nevertheless, Trump said on Wednesday that he did not think the war would restart because of the new fighting and that "everything will be over very quickly." Trump is not particularly keen on the possibility of a full-scale conflict.
Despite the increase in US attacks on military facilities in Iran, the market is somewhat relieved by the Trump administration's decision to refrain from targeting Iranian energy infrastructure.
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