Oil rises on concerns over escalating military tensions in the Middle East

Oil prices rose on Friday due to fears of a renewed military escalation in the Middle East after Iran released footage of commandos boarding a cargo ship in the Strait of Hormuz and on reports Tehran’s air defences had engaged “hostile targets.” Brent crude futures rose 99 cents, or 0.94%, to $106.06 a barrel at 0410 GMT, while West Texas Intermediate futures were up 71 cents, or 0.73%, at $96.56. Brent rose 17.13% throughout the course of the week while WTI rose 15.13%, the second-largest weekly gain since the war began. The resulting closure of the Strait of Hormuz after the beginning of the U.S.-Israeli war on Iran cut around 20% of the world’s supply of oil and liquefied natural gas. Both benchmark contracts settled up more than 3% on Thursday and jumped $5 a barrel after reports that air defences were engaging targets over Tehran and of a power struggle between Iran’s hardliners and moderates.