Crude oil traded just below $87 a barrel on Friday and was heading for a second consecutive weekly advance, with prices up about 5% as markets assessed the prospect of additional U.S. economic pressure on Iran and continuing disruptions to global energy supplies.
Prices remained supported by uncertainty surrounding the conflict involving Iran, which has disrupted energy flows across the Middle East and kept geopolitical risk elevated in oil markets.
U.S. Treasury Secretary Scott Bessent said Washington is expected to provide details Monday on new measures aimed at further isolating Iran’s economy. President Donald Trump has described the initiative as an “economic D-Day.”
The measures could have implications beyond Iran, particularly for countries that continue trading with Tehran. China, the largest buyer of Iranian crude, could become a key focus as Washington seeks to increase economic pressure on the country. Beijing has opposed the use of economic pressure and called for a diplomatic resolution.
Russian Supply Disruptions Add to Market Risks
Supply concerns are also being reinforced by disruptions across Russia’s energy sector.
Ukrainian attacks targeting Russian refineries and ports have affected fuel production and contributed to shortages in some areas, adding another source of uncertainty to global petroleum markets.
The combination of geopolitical tensions in the Middle East, potential restrictions on Iranian oil trade and disruptions to Russian energy infrastructure has kept supply risks elevated despite broader uncertainty surrounding global demand.
With crude heading for a roughly 5% weekly gain, markets are now turning their attention to Washington’s expected announcement Monday for indications of how the next phase of U.S. economic measures against Iran could affect international oil flows.
