Oil prices rose Friday after Iran fired missiles at the United Arab Emirates again and the U.S. struck two Iranian tankers that tried to evade its naval blockade.
International benchmark Brent crude futures added about 2% to $102.07 per barrel by 11:19 a.m. ET. U.S. West Texas Intermediate futures gained about 1% to $95.93 per barrel.
Brent and WTI both settled lower on Thursday, with each oil contract on track for weekly losses of more than 5%.
The UAE Defense Ministry said Friday its air defenses engaged two ballistic missiles and three drones launched from Iran. It is at least the second time this week that Iran has fired on the UAE.
Meanwhile, U.S. forces on Friday fired on two empty Iranian oil tankers, M/T Sea Star III and M/T Sevda, that violated the blockade, U.S. Central Command said in a statement. A Navy warplane fired into the ships’ smokestacks and disabled them, according to CENTCOM.
The U.S. and Iran traded fire Thursday in the Strait of Hormuz. Three U.S. destroyers came under attack by Iranian missiles, drones and small boats as they transited Hormuz into the Gulf of Oman, according to CENTCOM. The warships were not hit and U.S. forces eliminated the threats, CENTCOM said.
President Donald Trump, meanwhile, insisted the ceasefire with Iran remained in effect during a call with an ABC News reporter later Thursday. He said the strikes were “just a love tap.”
The attacks came as Iran is reviewing a U.S. proposal to end the war. Secretary of State Marco Rubio said the U.S. expects to a response on Friday.
Oil prices since the start of the year
Oil prices have gone through a rollercoaster as doubts emerge over peace negotiations, ANZ Research wrote in a note.
“The risk of a proposed U.S. peace deal breaking down will likely keep oil markets volatile,” ANZ’s experts said.
Citi analysts said they expect broader financial markets to stabilize despite recent volatility linked to the Middle East, though the bank warned that the path toward normalization is unlikely to be smooth and could keep oil prices elevated in the months ahead.
— CNBC’s Kevin Breuninger contributed to this report.
