Oil Prices Rise for Third Week Amid Escalating Israel-Iran Conflict

Oil prices are poised to post a third consecutive weekly gain, driven by heightened geopolitical tensions between Israel and Iran. Despite a dip on Friday, Brent crude futures were trading at $77.28 a barrel, down 2% for the day but up 3.9% for the week. U.S. West Texas Intermediate (WTI) crude for July, which expires Friday, rose 1.1% to $76. The more actively traded August contract gained 0.7% to $74.

Thursday’s spike in oil prices—nearly 3%—followed escalating attacks, with Israel bombing nuclear facilities in Iran and Tehran retaliating with drone and missile strikes, including one that hit an Israeli hospital. The conflict shows no signs of de-escalation, raising fears of broader regional instability.

Analysts say concerns over potential disruptions to oil supply are driving prices higher. Tanker rates have doubled, and many ships are now rerouting to avoid the Strait of Hormuz, a key oil chokepoint through which up to 21 million barrels per day of crude and refined products are transported. Iran, a major OPEC producer, currently pumps around 3.3 million barrels per day.

Phil Flynn of The Price Futures Group noted that while no Iranian exports have been officially disrupted, the threat alone is enough to keep markets on edge. Meanwhile, Israeli Prime Minister Benjamin Netanyahu vowed to make Iran "pay the full price," while Tehran warned against third-party intervention.

Adding to uncertainty, the White House stated that President Donald Trump will decide within two weeks whether the U.S. will intervene. Analysts believe this timeline may be a strategic delay, keeping markets in suspense and oil prices supported.

With no diplomatic breakthrough in sight, energy markets remain on high alert, tracking every development in the volatile Middle East standoff.