Oil rallies as US-Iran fighting heightens Strait of Hormuz supply fears

  • Oil benchmarks rose as US-Iran fighting heightened Strait of Hormuz supply concerns.
  • Brent traded near $96.06, up about 7.6% for the week.
  • EIA reported US commercial crude stocks fell 4.5 million barrels to 424.5 million.

Oil prices rose Friday, placing Brent and West Texas Intermediate on course for their strongest weekly gains since mid-July as renewed US-Iran fighting renewed concern over crude exports and shipping through the Strait of Hormuz. Brent traded near $96.06 a barrel, up about 7.6% for the week, while WTI was near $92.10, roughly 10.4% higher. Iran expanded restrictions affecting vessels in the waterway, where traffic remained below recent averages. US commercial crude inventories fell 4.5 million barrels to 424.5 million barrels in the week ended Aug. 28, adding support to the rally. OPEC+ was expected to keep its October production policy unchanged at its Sunday meeting, while increased Iraqi exports and possible progress toward a Russia-Ukraine settlement limited some upside risk.

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