Oil prices edged higher on Friday, putting Brent and WTI on track for a weekly gain of roughly 4 percent, as renewed U.S.-Iran hostilities returned to the forefront of market concerns, according to Ship & Bunker. The move followed condemnation from Qatar, Kuwait, Egypt and Bahrain over an Iranian attack on two tankers linked to the United Arab Emirates while transiting the Strait of Hormuz.
As of 0247 GMT, Brent crude rose 1 cent to $87.08 per barrel, while West Texas Intermediate gained 6 cents to $81.31 per barrel, Ship & Bunker reported.
Regional Solidarity, Broader Strategic Concerns
The four Middle Eastern nations rejected Iran’s claim of authority over the Strait of Hormuz and expressed full solidarity with the UAE, according to the report. However, Ship & Bunker noted that a potentially more significant development, from both a strategic and trading standpoint, was Washington’s approach toward Iran, which some observers see as capable of pushing the country’s military regime toward internal disorder.
According to Ship & Bunker, the U.S. warned on Thursday that it could sustain an indefinite naval blockade of Iran and escalate economic pressure on Tehran, as ceasefire negotiations have stalled. U.S. Treasury Secretary Scott Bessent was quoted by the outlet as saying, “Watch this space for more announcements coming next week because we are going to apply measures like have never been seen in the history of economic isolation of a country.”
Commenting on the implications, Bjarne Schieldrop, an analyst at SEB Research, told Ship & Bunker that “a return to normal flows out of the Strait of Hormuz is now suddenly without any near-term hopes.”
Asian Refiners Turn to U.S. Crude
Separately, Ship & Bunker reported that at least four Asia-based refiners increased purchases of U.S. crude this week as an alternative to Middle Eastern grades that may face disruption transiting Hormuz. South Korea’s GS Caltex bought 2 million barrels of Mars crude from Shell for November delivery at a premium of $13-14 above the Dubai October benchmark, the outlet said. Japan’s Cosmo Energy Holdings purchased Mars crude from Trafigura, while Taiwan’s state-owned CPC Corp acquired 2 million barrels of WTI through a tender at a premium of roughly $8-9 per barrel to Dated Brent, according to the report.
Does This Matter to You?
Continued instability around the Strait of Hormuz directly affects vessel routing decisions, freight costs, and crude and bunker fuel pricing across major trade lanes. The shift by Asian refiners toward U.S. crude as a hedge against Hormuz disruption, as reported by Ship & Bunker, signals changing sourcing patterns that could influence tanker demand on transpacific and transatlantic routes. Escalating U.S. sanctions pressure on Iran, as described in the report, may also prolong uncertainty over regional oil flows, a factor relevant to anyone monitoring bunker price volatility or planning transits through the Gulf region.
Gulf Bunkering does not provide operational or security guidance. This article is for informational purposes only. Operators should consult flag state authorities, P&I clubs, and relevant advisories for decisions relating to transit planning.
Sources: Ship & Bunker
