Oil heads for biggest weekly jump since July on US-Iran escalation

Oil prices climbed on Friday, putting crude on course for its sharpest weekly advance since mid-July, as escalating hostilities between the United States and Iran stoked fresh worries about supply disruptions from the Middle East.

Brent crude futures edged up 15 cents, or 0.2%, to $95.67 a barrel, while US West Texas Intermediate (WTI) crude rose 26 cents, or 0.3%, to $91.56. Over the week, Brent has gained 7.1% and WTI has jumped 9.8% — the largest weekly increases since the period ended July 20.

The latest surge follows US attacks this week that killed and wounded dozens, including Iranian civilians, marking the most intense clashes between the two nations since July. The broader conflict, which began with US-Israeli strikes in late February, is now in its seventh month.

Israeli Defence Minister Israel Katz reiterated warnings that Israel would "cripple" Iran's military and civilian infrastructure, including its energy facilities. Meanwhile, US Vice President JD Vance said on Thursday that Washington has no plans to hold talks with Tehran unless it stops attacking commercial shipping in the Strait of Hormuz.

Iran has expanded its list of vessels it considers non-compliant, warning of fines, confiscation, or detention for ships attempting to transit the strait. Iraqi tankers remain among the few cleared by Tehran to pass through.

Capping further gains, Russian President Vladimir Putin said a path to a deal ending the war in Ukraine still exists, adding that both the US and China are prepared to support a peace settlement.

On the supply side, Iraq increased its oil exports to roughly 2.34 million barrels per day in August, up from about 1.35 million barrels per day in July, according to two Iraqi energy officials. September exports are also expected to rise, aided by heavy discounts and Iranian approvals for Iraqi tankers.