Oil prices rebound as Middle East tensions deepen

Brent crude futures gained 33 cents to trade at $95.36 per barrel, while US West Texas Intermediate (WTI) crude rose slightly to $93.06 per barrel. Despite recent volatility, both benchmarks

Global oil prices edged higher on Friday, recovering part of the sharp losses recorded in the previous session, as escalating tensions in the Middle East renewed concerns over energy supplies and regional stability.

Brent crude futures gained 33 cents to trade at $95.36 per barrel, while US West Texas Intermediate (WTI) crude rose slightly to $93.06 per barrel. Despite recent volatility, both benchmarks are on track to register their first weekly gains in three weeks.

Market sentiment remained focused on developments in the Middle East, where uncertainty surrounding US-Iran peace negotiations continues to fuel concerns about potential disruptions to global oil flows. The situation was further complicated after Hezbollah leader Naim Qassem rejected a newly proposed ceasefire arrangement in Lebanon, casting doubt on efforts to ease regional tensions.

Supply concerns also intensified after an explosion forced the suspension of oil loadings at Oman’s Mina al Fahal terminal. Meanwhile, shipping activity through the strategically important Strait of Hormuz remains constrained. The waterway handles roughly one-fifth of the world’s seaborne oil trade, making any disruption a significant factor for global energy markets.

Analysts have warned that declining global oil inventories could tighten supplies further and trigger a stronger price rally in the coming months. Market observers note that ongoing geopolitical risks, combined with reduced stockpiles, could increase upward pressure on crude prices during the third quarter of the year.

Although diplomatic efforts continue, mixed signals from regional stakeholders have left traders cautious. US President Donald Trump said progress was being made toward reducing tensions in Lebanon, but uncertainty over broader negotiations involving Iran continues to cloud the outlook.

The Organization of the Petroleum Exporting Countries (OPEC) has maintained its forecast for oil demand growth at 1.2 million barrels per day this year, expressing confidence that global consumption will remain strong despite geopolitical instability and shipping disruptions.

At the same time, Iranian oil exports have dropped to their lowest level in six years, largely due to increased pressure on the country’s energy shipments. However, weaker demand from China has partially offset the impact of reduced Iranian supplies on global prices.

With geopolitical tensions, supply risks, and declining inventories all influencing market sentiment, oil traders are expected to closely monitor developments in the Middle East in the weeks ahead.