Key Highlights

  • Brent crude futures were 0.8% lower and WTI crude futures for October delivery were 0.89% lower on Friday morning, though both remained on track for a second straight weekly gain.
  • Traders are weighing Washington's threat of "crushing" economic sanctions on Iran, which has dashed hopes of a diplomatic deal to end the war and restore shipping through the Strait of Hormuz.
  • Brent crude is on course for a monthly gain of nearly 6%, building on last week's 5.95% rise.
  • The international benchmark closed above USD 93 a barrel on Thursday for the first time since July 24.

Crude Eases but Weekly Trend Stays Positive

Crude oil prices were lower Friday morning, but remained on course for a second straight weekly gain. Traders are assessing Washington's threat of "crushing" economic sanctions on Iran, which has dashed hopes of a diplomatic deal to end the war and restore shipping levels through the Strait of Hormuz.

Brent crude futures were 0.8% lower at 4:50 a.m. ET on Friday. US West Texas Intermediate futures for October delivery were 0.89% lower.

Oil on Track for Strong Monthly Gain

Despite Friday's pullback, Brent Crude is on course for a monthly gain of nearly 6%, following last week's 5.95% rise. The international benchmark closed at more than USD 93 a barrel on Thursday for the first time since July 24, underscoring the scale of the rally tied to escalating tensions between Washington and Tehran.

Conclusion

Friday's modest pullback looks more like a pause than a reversal, with oil still on track for a second consecutive weekly gain and a strong monthly advance. Whether that momentum continues will likely hinge on how the standoff over Iran sanctions develops and whether shipping through the Strait of Hormuz shows any signs of normalizing in the coming weeks.