Brent is trading at $84 per barrel and is on track to gain more than 10% for the week, as the escalation of attacks between the United States and Iran has intensified concerns over supply disruptions in the Middle East. This week, the United States carried out several strikes on Iran, hitting an oil tanker near the country’s main export terminal for the first time since the blockade of Iranian ports was reimposed.

President Donald Trump also warned that the United States could strike Iranian infrastructure as early as next week if diplomatic efforts fail to produce a breakthrough. Meanwhile, Tehran has reportedly instructed the Houthis in Yemen to close the Bab el-Mandeb Strait, a critical route for Saudi oil exports through the Red Sea, if Iran’s energy infrastructure comes under attack.
Shipping through the Strait of Hormuz has fallen sharply since the latest escalation, although some vessels are still continuing to pass through the waterway.