On Friday, oil prices saw a rise of 1% amid escalating conflict in the Middle East, specifically the ongoing three-week US-Israeli military operations against Iran. The anticipated deployment of thousands of additional US troops to the region has also contributed to market volatility. As tensions mount, Brent crude for May delivery increased by 91 cents to reach $109.64 per barrel, while West Texas Intermediate rose by $1.29 to $97.43 per barrel, illustrating the sensitivity of oil markets to geopolitical events.

The intensity of the US-Israeli military campaign has intensified this week, targeting key energy infrastructure within Iran, which in turn has retaliated by launching attacks on adjacent Gulf nations. Amid these developments, US President Donald Trump commented that Israel would not target energy facilities again, yet market analysts are predicting prolonged disruptions in supply chains and possible delays in reopening strategic waterways, such as the Strait of Hormuz. This creates a looming threat of continued high prices for oil, which could potentially spike to record levels if the conflict persists.

Commodity analysts are cautioning that a rapid turnaround in the current oil price trends is unlikely, given the revived concerns about supply and geopolitical instability. Ole Hansen, a commodities analyst at Saxo Bank, stated to Reuters that market expectations are being shaped by the prolonged conflict and the anticipated challenges in restoring energy supplies following recent attacks. The current trajectory suggests that oil prices may remain elevated for the foreseeable future, emphasizing the intricate link between military developments and energy economics in the region.