Oil on Track for Weekly Gain as Attacks Near Strait of Hormuz Stoke Supply Fears

Oil prices eased slightly on Friday but remained on course for a weekly gain, with investors keeping a close watch on escalating supply risks in the Middle East. Mounting concerns over shipping disruptions near the Strait of Hormuz, a critical chokepoint for global oil flows, underpinned prices throughout the week.

Attacks on tankers transiting the Strait of Hormuz, tied to Iran's stepped-up activity in the region, drove a sharp rally in the prior session, with U.S. West Texas Intermediate futures closing near $98 per barrel on Thursday after rising roughly 3 percent, or $2.88, on the day. Friday's modest pullback reflected cautious positioning rather than a shift in the underlying supply narrative, as traders continued to price in the risk of further disruptions to one of the world's busiest oil transit routes.

A softer U.S. dollar and falling bond yields provided additional support across commodity markets, contributing to firm gold prices alongside the oil gains. The combination of Hormuz shipping risks and a drawdown in U.S. crude inventories gave the weekly advance a broad foundation, with energy markets broadly unsettled heading into the weekend.