Oil prices are on track for a third straight weekly gain as escalating Israel-Iran conflict raises concerns over supply security in the Middle East.
The international benchmark Brent crude was trading at $75.59 per barrel at 2.36 p.m. local time (1136 GMT) on Friday, marking a rise of around 2.6% from last week's closing price of $73.67.
Similarly, the American benchmark West Texas Intermediate (WTI) traded at $73.49 per barrel, up approximately 2.6% from last Friday's close of $71.60.
Brent crude is on track for a 2.6% weekly increase due to escalating geopolitical tensions and supply-side concerns as US President Donald Trump said that he will make a decision on whether or not to carry out strikes on Iran "within the next two weeks."
"Based on the fact that there's a substantial chance of negotiations that may or may not take place with Iran in the near future, I will make my decision whether or not to go within the next two weeks," Trump said in a statement.
The conflict has fueled market risk premiums and raised alarms about the security of the Strait of Hormuz, through which roughly a fifth of global oil passes.
Prices hit a five-month high last Friday amid rising tensions in the oil-rich region.
Israel launched large-scale attacks, targeting nuclear facilities and top military command centers in several Iranian cities, prompting a response from Iran with ballistic missile strikes.
Crude prices received further support from a sharper-than-expected drop in US inventories.
The US Energy Information Agency (EIA) reported that commercial crude oil inventories in the country fell by approximately 11.5 million barrels last week, down to 420.9 million barrels. Market expectations had predicted a decline of only around 2.3 million barrels.
Experts note that current US stock levels are about 10% below the five-year average. Lower inventory levels highlight increasing demand in the world's biggest consumer.
Meanwhile, the US Federal Reserve's (Fed) updated projections weighed on oil prices this week.
In its latest meeting, the Fed raised its year-end core Personal Consumption Expenditures (PCE) inflation forecast to 3.1% from 2.8% and trimmed its 2025 growth outlook from 1.7% to 1.4%.
The Fed's stance suggests that if inflation continues to rise, it may pause interest rate cuts. Higher interest rates could strengthen the US dollar against other currencies, leading to reduced oil demand and further downward pressure on prices.
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr