Middle East escalation pushes oil prices above $85
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Oil prices surged above $85 a barrel on Friday after escalating conflict in the Middle East raised supply disruption fears. Brent crude rose 3.2% to $85.40, while WTI gained 3.5% to $81.90. The rally followed airstrikes on key energy infrastructure in the region.
Price Surge
Brent crude futures settled at $85.40 a barrel, the highest since April. West Texas Intermediate rose to $81.90. The gains accelerated after reports of damage to a major oil terminal in the Persian Gulf, though no official confirmation has been issued.
Supply Risks
The escalation involves multiple state and non-state actors, raising the risk of supply disruptions across the Strait of Hormuz, through which about 20% of global oil passes. Analysts at Goldman Sachs noted that a prolonged conflict could cut output by up to 1.5 million barrels per day.
What's Next
Traders are watching for any further military action over the weekend that could affect production or shipping lanes. It remains unclear whether OPEC+ will adjust its output strategy in response to the price spike.
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Middle East escalation pushes oil prices above $85
