Oil Prices Rise 0.7% Amid U.S.-Iran Tensions and Supply Constraints

AI Summary

Oil prices increased on Friday, with U.S. West Texas Intermediate crude futures rising 0.7% to $98.58 per barrel, while Brent crude for June delivery also increased 0.7% to $96.56 per barrel. Tensions around the Strait of Hormuz persist, as the vital shipping lane remains largely closed despite a recent ceasefire agreement between the U.S. and Iran. Additionally, attacks on Saudi Arabia's energy infrastructure have cut oil production capacity by approximately 600,000 barrels per day and impacted flows through the East-West Pipeline. These developments keep markets on edge due to potential supply disruptions, which could significantly influence oil prices.