U.S. Crude Oil Rises Above $70 After U.S. Strike on Iranian Targets Rekindles Supply Concerns

The military action followed Iran’s reported attack a day earlier on a cargo vessel transiting the strategic waterway. Iranian state media said U.S. forces targeted military infrastructure on Sirik Island, while Iranian officials pledged a “swift and decisive” response.

The renewed escalation interrupted a trading session that had been dominated by expectations of improving oil flows through the Strait of Hormuz, one of the world’s most critical energy shipping routes.

Oil Markets Reverse Course After Military Action

Following reports of the U.S. strikes, West Texas Intermediate (WTI) crude for after-hours trading rose 1.5% to $70.24 per barrel, recovering after the August front-month contract had settled 3.7% lower at $69.23.

Brent crude closed Friday down 3.3% at $71.99 per barrel, with both major benchmarks recording sharp weekly declines. WTI lost 8.7% over the week, while Brent fell 10.6%, reflecting easing fears earlier in the week over prolonged supply disruptions.

Shipping Recovery Had Weighed on Prices

Before the latest military developments, market sentiment had improved as shipping activity through the Strait of Hormuz showed signs of normalization.

According to analysts, crude export flows recovered significantly during the week, reducing immediate concerns over supply interruptions despite Thursday’s reported attack on a commercial vessel.

Saudi Arabia Resumes Ras Tanura Oil Loadings

Adding to expectations of stronger global supply, Saudi Arabia resumed crude exports from its Ras Tanura terminal after a nearly four-month interruption.

Shipping data indicated that two Very Large Crude Carriers (VLCCs), each capable of transporting approximately 2 million barrels, loaded crude at the terminal while another tanker awaited its turn nearby.

The resumption of exports from one of the world’s largest oil-loading facilities reinforced expectations that Gulf producers are restoring normal export operations despite heightened regional tensions.

Natural Gas and Energy Stocks

U.S. natural gas futures also declined during Friday’s session, with the expiring July contract settling 3.3% lower at $3.231 per million British thermal units (MMBtu). For the week, natural gas futures were down approximately 0.1%.

Meanwhile, the Energy Select Sector SPDR Fund (XLE) finished the week little changed, reflecting investor caution as markets continue to balance improving supply conditions against persistent geopolitical uncertainty in the Middle East.