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EMEA Oil Update: Crude Gains as US-Iran Fire Exchange, UAE Attacks Roil Markets

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-- EMEA crude futures advanced in after-hours trading on Friday as a series of fire exchanges between the US and Iran and fresh attacks on the UAE threatened to dismantle a fragile month-old ceasefire and disrupt global energy supplies.

Brent crude futures gained 1.20% to $101.28 per barrel, while Murban oil futures were up 2.73% to $99.35/bbl.

"Brent crude trades firmer, holding above $100 after another volatile week that saw an almost $20 trading range as Middle East headlines swung sentiment between optimism and frustration," Saxo Bank strategists said.

The US and Iranian naval forces traded fire in the Strait of Hormuz on Thursday, with each side claiming the other initiated the attack.

On Friday, the US Central Command said that US forces fired on two empty Iranian oil tankers, M/T Sea Star III and M/T Sevda, that violated the blockade.

"US Central Command enforced blockade measures against two Iranian-flagged unladen oil tankers attempting to pull into an Iranian port on the Gulf of Oman," Centcom said in a statement on X.

The attack was the latest in a number of military actions this week that have further undermined the fragile US-Iran ceasefire, even as President Trump insists that the temporary truce remains in effect.

Iran's Foreign Minister Abbas Araghchi has accused the US of opting for a "reckless military adventure" every time a "diplomatic solution is on the table".

"Is it a crude pressure tactic? Or the result of a spoiler once again duping POTUS [US President Donald Trump] into another quagmire?" Araghchi said in a post on X.

Global oil markets' focus remains on the Hormuz, which has been effectively closed since the outbreak of the Middle East conflict in February.

Iran's Islamic Revolutionary Guard said it seized the 'offending' oil tanker, Ocean Koi, in the Gulf of Oman for maritime violations and attempting to disrupt the country's oil exports.

"During a special operation, naval commandos of the Islamic Republic of Iran's Army detained the violating oil tanker Ocean Koi," an Iranian Navy statement was quoted by local media, adding that the vessel was "attempting to disrupt oil exports and the interests of the Iranian nation."

Meanwhile, the US expects an Iranian response to its latest proposal to end the conflict by the end of the day on Friday. US Secretary of State Marco Rubio told reporters in Rome that Washington is expecting "something today."

"We're expecting a response from them... The hope is it's something that can put us into a serious process of negotiation," said Secretary Rubio.

However, Iranian foreign ministry spokesman Esmail Baghaei says Tehran's response to the US proposal is still under review.

"The proposal is still being reviewed, and once we reach a conclusion, we will announce it," Baghaei was quoted as saying by local media. "We are doing our own job and pay no attention to such deadlines."

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