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US Oil Update: Crude Headed for Weekly Gains as Supply Concerns Mount

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Crude prices were headed for their second straight week of gains on Friday as traders weighed US economic pressure against Iran and ongoing regional security risks.

Front-month West Texas Intermediate crude futures eased 0.2% to $86.60 per barrel, while Brent futures held steady at $93.78/bbl.

Both contracts were headed for a weekly gain of about 5% so far this week.

"The main drivers remain US-Iran tensions and prolonged disruptions in the Strait of Hormuz," said Linh Tran, market analyst at XS.com.

"Unlike the early stage of the conflict, when each new development involving Iran or Hormuz could trigger sharp swings in oil prices, the market now appears to have partly adapted to a prolonged state of disruption," Tran added.

Market momentum remains heavily influenced by geopolitical developments, notably President Trump's threats of economic warfare against Iran.

US Treasury Secretary Scott Bessent reportedly said that the administration will pursue maximum economic pressure and unveil its toughest sanctions package yet on Monday.

However, analysts note that the measures may stop short of directly targeting Iranian oil sales to avoid triggering a major confrontation with China ahead of next month's meeting between President Trump and Chinese President Xi.

Compounding these pressures, Houthi forces claimed responsibility for two recent drone attacks targeting an Aramco facility and Najran airport in Saudi Arabia.

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