Oil prices steady but set for weekly gain as US-Iran conflict drags on

Oil prices were little changed on Friday, yet remained on course for a second consecutive weekly gain as the ongoing US-Iran conflict continues to restrict supply from the Middle East.

Brent crude futures edged up 4 cents to $93.82 a barrel, while US West Texas Intermediate (WTI) slipped 6 cents to $86.78. Over the past five sessions, Brent has risen more than 7% and WTI over 8%, with both benchmarks touching their highest levels since late July.

The market's upward momentum is driven by concerns that the inconclusive war will keep production from major exporters like Saudi Arabia, Iraq, the UAE, and Kuwait under pressure. A previous peace deal expired this week with no signs of renewed talks, and US President Donald Trump has threatened economic retaliation against nations supporting Iran.

Analysts note that neither side appears willing to back down, even as crude prices climb steadily. "Both sides are dug in but lacking the luxury of time to play the waiting game," said Tony Sycamore of IG.

On Wednesday, Trump warned of "economic warfare and isolation on an unprecedented scale" against Tehran, cautioning any country providing support to Iran would face consequences. This week, the UAE suspended all financial and economic transactions with Iran, underscoring the tense relations between the Gulf producer and Tehran.

The war, which began on February 28 with US and Israeli strikes on Iran, has killed thousands. Tehran's blockade of the Strait of Hormuz and attacks on regional energy facilities have severely disrupted global oil and gas flows. Shipping through the strait on Wednesday saw just nine vessel transits, far below pre-war levels, when roughly one-fifth of global consumption passed through the waterway.