Brent and WTI crude oil climbed Friday and headed for weekly gains after renewed tanker attacks near the Strait of Hormuz and a hardening U.S. blockade of Iran. The rally comes even as U.S. crude stockpiles posted their largest weekly build in more than 3-1/2 years.
Tankers under fire as prices climb
Brent futures rose 80 cents, or 0.92%, to $87.87 a barrel at 10:48 a.m. CT Friday. U.S. West Texas Intermediate crude gained 43 cents, or 0.53%, to $81.69 a barrel.
Both benchmarks were on track for weekly gains: 5.09% for Brent and 4.37% for WTI. Two vessels from the state-owned Abu Dhabi National Oil Company were attacked while transiting the strait on Thursday, an incident the UAE government condemned as an Iranian attack. According to Price Futures Group senior analyst Phil Flynn: "That's the headline that pushed up prices: Tankers attacked."
Crude exports from Russia's Sheskharis terminal at the Black Sea port of Novorossiysk were suspended Friday following a drone attack, according to three sources familiar with the matter. Flynn said the Ukrainian strike on Novorossiysk added to the upward pressure on prices.
CENTCOM tightens the Hormuz squeeze
The blockade behind the rally shows no sign of easing. U.S. Central Command confirmed it redirected 62 commercial vessels, disabled three, and boarded two during recent enforcement operations in the Arabian Sea. The blockade, resumed July 14 after a brief suspension, is being held at a heightened operational level.
Washington has signaled it intends to keep the pressure on. Treasury Secretary Scott Bessent said Thursday the U.S. could maintain the blockade indefinitely and step up economic pressure on Tehran after ceasefire talks stalled. Iran, meanwhile, insists no vessel can transit the strait without its permission, directly challenging President Trump's claim of total control of the waterway.
A crude build tempers the rally
Yet supply-side risk is running up against a swelling surplus onshore. U.S. crude inventories posted their largest weekly increase in more than 3-1/2 years, Reuters reported. The build reached 17 million barrels, according to Oilprice.com, offsetting some of the bullishness from the attacks.
OPEC also trimmed its 2026 oil-demand growth forecast to 580,000 barrels per day, its fourth straight monthly cut, even as the IEA projects a steeper decline. Julius Baer's Norbert Rucker called the latest IEA and EIA reports revealing, noting that storage levels are holding up better than feared. SEB Research's Bjarne Schieldrop said a return to normal flows through Hormuz now carries no near-term hope.
Sources: Investing.com/Reuters, Oilprice.com, Crypto Briefing
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