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US Oil Update: Crude Set for Weekly Rise as Supply Risks Linger

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Crude futures held steady on Friday but were headed for a weekly gain as attacks on tankers in the Strait of Hormuz raised supply concerns.

Front-month West Texas Intermediate crude futures were unchanged at $81.23 per barrel, while Brent futures were steady at $86.96/bbl. Both benchmarks were headed for weekly gains following two weeks of losses.

The UK Maritime Trade Operations reported that a tanker sustained minor damage after being struck by an uncrewed aerial vehicle while conducting an outbound transit of the Strait of Hormuz.

RBC Capital Markets strategists warned that maritime disruptions in regional waterways will persist despite ongoing diplomatic overtures.

ANZ analysts noted that with both sides claiming control of the waterway and demanding unyielding concessions, a durable peace remains elusive.

Reinforcing these tensions, an Iranian parliamentary committee approved a ban on ships owned by the US, Israel, and other hostile countries under a new Hormuz management plan, according to Tasnim News Agency.

Meanwhile, US Defense Secretary Pete Hegseth reportedly stated during a press briefing that the military can sustain its naval blockade of Iran indefinitely through asset rotation, even as Tehran warns of escalation.

Against this backdrop of Middle Eastern chokepoint risks, broader trade flows are shifting significantly.

Commodity analytics firm Kpler noted on Thursday that China's crude demand could pick up sooner than expected, as the gap between recovering refinery runs and suppressed imports makes current commercial inventory drawdowns unsustainable.

Meanwhile, Reuters reported Friday that Russian crude accounted for a record 50.83% of India's total oil imports in July as Middle East supply disruptions compelled Indian refiners to lean heavily on Russian barrels.

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