Oil prices climbed on Friday as geopolitical risks in the Middle East intensified, particularly surrounding the ongoing standoff between the United States and Iran. West Texas Intermediate (WTI) crude traded around $102.40 per barrel during Asian hours, recovering after a 2.7% loss the previous day and positioning for a second consecutive weekly gain. Meanwhile, U.S. WTI futures for June rose 0.45% to $105.54, and the Brent crude contract for June reached a four-year high of $126.41 before settling at $114.01. The July Brent futures contract was up 1.11% to $111.63 as of 10:15 p.m. ET [1][2].
The price surge is attributed to heightened supply concerns stemming from the Middle East. U.S. President Donald Trump announced the continuation of the naval blockade of Iranian ports, citing ongoing uncertainty over the reopening of the strategically vital Strait of Hormuz. Trump also criticized congressional efforts to limit his war powers, referencing a Senate proposal that was rejected earlier in the day. Iran’s Supreme Leader Mojtaba Khamenei reinforced Tehran’s hardline stance, vowing not to relinquish the country’s nuclear or missile capabilities and signaling continued control over the Strait of Hormuz [1][2].
The geopolitical backdrop is further complicated by the War Powers Resolution, which gives Trump a 60-day deadline to withdraw U.S. troops from hostilities in Iran unless Congress authorizes military action. The U.S. and Israel launched strikes on Iran on February 28, with Trump notifying Congress on March 2, setting a May 1 deadline. A senior White House official stated that a ceasefire reached three weeks ago had 'terminated' hostilities, but tensions remain high as Trump threatened to maintain the blockade until Iran agrees to a nuclear deal. Tehran has refused to reopen the Strait of Hormuz unless the blockade is lifted. Iranian officials have threatened 'long and painful strikes' on U.S. positions if hostilities resume [2].
Additional supply risks emerged from a Ukrainian drone strike targeting Russia’s Black Sea port of Tuapse, the fourth such attack in a week, which ignited a fire at the sea terminal but caused no reported injuries. This adds to the overall uncertainty in global oil supply chains [1].
Market sentiment is cautious, with traders monitoring technical support and resistance levels for both Brent and WTI. Brent’s $126.41 high is seen as strong resistance, with $111.63 now a key support level. Analysts suggest further upside is possible if geopolitical tensions escalate. In the U.S., gasoline prices have surged, with California motorists paying $6 per gallon—the highest in two years—becoming a political issue ahead of upcoming elections [1][2].
CONCLUSION
Oil prices have surged due to escalating geopolitical tensions in the Middle East, particularly the unresolved U.S.-Iran standoff and ongoing supply disruptions. Market sentiment remains cautious, with traders closely watching for any changes in hostilities or U.S. policy that could further impact prices. The situation continues to drive volatility and risk premiums in both Brent and WTI crude markets.