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EMEA Oil Update: Oil Prices Headed for Week-Over-Week Gains

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Crude oil prices were headed for weekly gains on Friday as US-Iran conflict flared up, while prices stabilized after US President Donald Trump downplayed the threat of full-scale conflict and spared Iranian energy infrastructure from direct targeting.

Brent crude futures eased 0.1% to $76.22 per barrel, while Murban crude futures shed 0.4% to $71.09/bbl. Both contracts were headed for weekly gains of nearly 5.7% and 6.9% respectively.

The initial upward momentum was triggered by a mid-week price spike following an exchange of attacks between the US and Iran.

ANZ analysts said "the market drew some reassurance from the Trump administration's decision to avoid targeting Iranian energy infrastructure. This was aided by comments from President Trump, who said he doesn't expect a return to a full-scale conflict."

Despite the easing of immediate military fears, structural risks to oil logistics continue to keep the market on edge.

Technical-level talks between Washington and Tehran are ongoing, but physical shipping traffic through the strategic Strait of Hormuz remains severely depressed, with analysts reporting an absence of large, commodity-laden vessels.

Because roughly one-fifth of the world's global crude supply normally transits this narrow waterway, traders remain focused on the conflict's potential to trigger prolonged maritime disruptions and fuel ongoing price volatility.

"With oil prices softening following the mid-week spike, traders appear to view the latest tensions as a challenge to the ceasefire rather than a complete breakdown, as Trump's comments earlier in the week briefly led markets to fear," Saxo Bank analysts noted.

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