EMEA crude futures diverged in after-hours trading on Friday after Iran attacked two tankers in the Strait of Hormuz, escalating tensions in the Gulf and stoking concerns over disruptions to global energy supplies.
Brent crude futures rose by 1% to $89.93 per barrel, while Murban crude futures plunged by 8.4% to $78.54/bbl.
Saxo Bank strategists said that October Brent dropped toward $85 early Friday after Thursday's high above $89/bbl, and September WTI traded near $81.60, still on pace for a large monthly advance as the US-Iran conflict continues to strain shipping via the Hormuz.
Iran's Islamic Revolutionary Guard Corps said on Friday that it attacked two tankers as they tried to transit the Strait under US military escort, according to local media reports. Four other tankers turned back after the strikes.
The Persian Gulf Strait Authority also said that passage through the Hormuz remains unfeasible due to continued "aggressive actions" by US forces in the region. The authority said requests for passage permits would be reviewed and issued gradually once stability is restored, without providing a timeline for when normal operations could resume.
Soojin Kim, research analyst at MUFG, said that though shipping via the strategic waterway has shown signs of improvement, security risks remain elevated as Saudi Arabia seeks to build an international coalition to protect the Red Sea following Houthi attacks.
On Friday, Iran launched attacks on US infrastructure and military bases in Kuwait and Bahrain, following the latest wave of US strikes against the country.
Tehran said it targeted aircraft shelters, satellite communication systems and equipment storage facilities used by the US military at Kuwait's Ahmad al-Jaber Air Base in a drone strike. On Thursday, Iran's army also claimed to have attacked US facilities at Sheikh Isa Air Base in Bahrain, targeting power generators, navigation systems and support buildings.
Meanwhile, US Central Command said on Thursday that its forces were still blockading Iranian oil exports via the Gulf and had completed a heavy wave of strikes. The US military currently has over 50,000 service members deployed across the Middle East.
The Saudi Defense Ministry said on Thursday that over 40 countries attended a meeting to discuss "strengthening maritime defense cooperation and unifying efforts to protect the security of maritime passages.
The push to create a naval alliance comes as Iran-backed Houthi militants in Yemen declared a maritime embargo of Saudi Arabia last week. Iran has repeatedly attacked ships transiting the Strait.
On Thursday, mediator Pakistan insisted that negotiations between Iran and the US were ongoing, even as Washington carried out a "heavy wave of strikes" against Tehran in retaliation for fresh attacks targeting Jordan.
Kim said despite modest easing in immediate supply risks, continued disruptions across key export routes and heightened regional tensions are likely to keep oil prices volatile.