Oil Prices to End Week above 100$

By Al Ahed Staff, Agencies

Oil prices rose on Friday, with both major benchmarks on track to end the week above $100 a barrel for the first time since mid-May, as the increasing tensions in West Asia continue to disrupt shipping in the Strait of Hormuz

Brent crude futures rose 81 cents, or 0.8%, to $108.44 a barrel by 0345 GMT. US West Texas Intermediate crude rose 69 cents, or 0.7%, to $103.17 a barrel. Both benchmarks rose more than 6% on Thursday.

Weekly, the benchmarks were trading nearly 13% higher, the steepest gain since the week ended July 17. "While meaningful volumes are still moving through the Strait of Hormuz, flows remain well below pre-war levels, underscoring how fragile the situation has become," ING analysts said in a note.

Oil supply disruptions due to the US aggression on Iran, along with Ukrainian attacks on Russia's refineries, pushed the US national average diesel price past $6 a gallon for the first time on Thursday, according to price tracker GasBuddy.

Still, US President Donald Trump has not shown any signs of easing the aggression on Iran, warning the US may hit Iran's Pickaxe Mountain near the Natanz uranium enrichment facility, but said he thought the war would end immediately after the November midterm elections.

Iran said it had targeted 10 ships near the Strait of Hormuz on Wednesday in retaliation to the US hitting five Iranian oil tankers. Iran's Islamic Revolution Guards said it would escalate its response to any further attacks.

“With events spiraling and Iran showing it is willing to stretch this conflict as wide and as long as it can, it is becoming increasingly likely that WTI crude will retest the $119.48 high from early March,” IG analyst Tony Sycamore said.