Dubai – Oil prices rose for the second consecutive day on Friday, driven by renewed concerns over Middle East supply chains. However, crude remains on track to record sharp weekly losses. Investors are betting that the war against Iran will de-escalate after Democrats regained control of the US Congress.
Market Data and Price Movements
Brent January futures climbed 1.53 percent, or $1.50, to $99.79 per barrel. The price briefly surpassed the $100 mark during trading hours before settling slightly lower. West Texas Intermediate December contracts also gained, rising 1.16 percent to $91.57 per barrel. These gains reflect immediate market reactions to geopolitical developments.
Political Impact on Energy Markets
Despite the daily recovery, both benchmarks face approximately 12 percent weekly declines. This downward trend follows widespread selling triggered by expectations that political shifts in Washington would reduce regional tensions. Prices had previously dropped significantly when Republicans lost control of both House and Senate chambers to Democrats in Tuesday’s midterm elections.
Houthi Attacks Disrupt Supply Routes
Attacks on oil tankers in the Gulf and Strait of Hormuz on Wednesday and Thursday reignited supply safety fears. The strait serves as a primary maritime outlet for Middle Eastern oil shipments. Continued attacks keep prices supported despite growing expectations of political thawing between major powers.
Analyst Perspectives on Volatility
Tim Waterer, chief analyst at KCM, described Friday’s rise as a technical recovery from the sharp sell-off following US elections. He emphasized that the fundamental driver is investor realization that the problem persists. Democratic victories have not halted attacks in the critical waterway, according to market observers tracking the situation closely.
Iranian Claims and Historical Context
Iran stated on Thursday that three additional tankers were attacked in the Strait of Hormuz. British Maritime Trade Operations data indicates attack rates on oil-carrying vessels remain near record levels. Analysts warn that without a reliable path to safer transit, prices will likely find support at lower levels while remaining vulnerable to sudden moves on escalation news.
This story was produced in the newsroom from the disclosed sources named above.
