Crude oil prices rose Friday and headed for their strongest weekly gains since mid-July as renewed fighting between the United States and Iran intensified concerns about Middle East supply and shipping through the Strait of Hormuz.
Brent crude futures traded around $96.06 a barrel, putting the global benchmark on track for a weekly gain of about 7.6%. U.S. West Texas Intermediate crude was near $92.10, up roughly 10.4% for the week, according to Reuters.
The advance has returned geopolitical risk to the center of the oil market after fresh U.S.-Iran attacks raised fears that disruptions around the Persian Gulf could restrict crude exports. Iran has expanded restrictions affecting vessels using the Strait of Hormuz, while ship traffic through the waterway has remained well below recent averages.
Brent Crude Holds Above Rising 50-Period Average
Brent’s four-hour chart shows the latest rally consolidating near $95-$96 after breaking sharply higher at the start of September. The contract was at $95.53 when the supplied TradingView chart was captured early Friday, remaining comfortably above its 50-period exponential moving average at $92.37.
Brent Crude Futures 4-Hour Price Chart. Source: TradingView.
Brent has climbed from around $85 in late August to the mid-$90s, establishing a sequence of higher lows and higher highs. The first visible resistance sits around $97-$98, where the latest advance stalled. A sustained break above that area could expose the late-July highs around $100-$102.
Momentum remains elevated without showing an extreme reading. The chart’s 14-period relative strength index stood near 60.7, below the 70 level commonly associated with overbought conditions.
On the downside, the $94-$95 area is the first zone to watch if Brent retreats. The rising 50-period average near $92.37 provides a stronger technical support level. A break below that average would weaken the short-term advance and suggest that geopolitical gains are beginning to unwind.
WTI Crude Reclaims $90 as U.S. Inventories Fall
WTI has also pushed decisively above $90. The supplied daily chart showed U.S. crude around $91.47, with gains of about 9.7% over one week and more than 20% over one month.
WTI Crude Oil Futures Daily Price Chart. Source: Investing.com
The move above $90 is significant after WTI spent much of July and August below that threshold. Holding the area would keep the recent recovery intact, while further gains would bring the mid-$90s into focus before the market confronts the higher prices reached earlier this year.
U.S. inventory data added support to the rally. Commercial crude stocks fell by 4.5 million barrels to 424.5 million barrels in the week ended Aug. 28, according to the Energy Information Administration. Gasoline inventories declined by 1.2 million barrels, while commercial crude stocks remained about 1% above their five-year seasonal average.
OPEC+ Meeting Adds Another Oil Price Catalyst
OPEC+ is expected to leave its October production policy unchanged when the group meets Sunday, after completing another stage of its planned output restoration.
The meeting comes as renewed tensions involving Iran and the Strait of Hormuz increase concern about Middle East supply. OPEC+ policy could help offset some of that risk if production remains stable, while higher Iraqi exports and the possibility of progress toward a Russia-Ukraine settlement continue to limit part of oil’s upside.
Brent faces immediate resistance around $97-$98, followed by the $100 level. WTI needs to hold above $90 to keep the recent breakout intact. With Middle East supply risks elevated and the OPEC+ meeting approaching, both benchmarks could remain volatile into the weekend.
