Brent crude extended gains on Friday, trading near $97 per barrel, after attacks on Saudi energy infrastructure cut production capacity, even as prices remain on track for their worst weekly drop since June.
The global benchmark rose about 1.2% in the previous session amid choppy trading, while US West Texas Intermediate crude traded above $98 per barrel. Despite the rebound, Brent is still down more than 10% this week following the ceasefire announced by the United States and Iran earlier this week.
Oil prices found support after Saudi Arabia said attacks had reduced its production capacity by around 600,000 barrels per day, Bloomberg reported quoting Saudi's news agency. The cut accounts for roughly 10% of the kingdom's normal crude exports, highlighting the continued vulnerability of supply even after the ceasefire, the report said.
Strikes on a pumping station linked to the East-West pipeline have also reduced throughput by about 700,000 barrels per day, affecting shipments routed through the Red Sea, the report added.
Talks In Focus
Markets are now focused on upcoming US-Iran talks scheduled over the weekend in Islamabad.
US Vice President JD Vance is expected to lead the American delegation in discussions with Iranian officials, with the status of the Strait of Hormuz likely to be a central issue.
The waterway remains a critical route for global oil shipments and has been at the centre of tensions during the conflict.
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Ceasefire Impact
Oil prices have retreated sharply this week after Washington and Tehran agreed to a ceasefire, easing immediate concerns of a prolonged supply disruption.
However, the latest attacks on infrastructure have underscored that risks to supply persist despite the pause in hostilities.
Trump Signals
US President Donald Trump said he was "very optimistic" about reaching a deal with Iran and indicated that Israel may scale back its operations against Tehran-backed groups.
At the same time, Trump warned Iran against imposing charges on vessels passing through the Strait of Hormuz, signalling that tensions around the route remain unresolved.
Volatile Markets
Oil markets have remained highly volatile since the conflict began, with prices swinging sharply on both geopolitical developments and policy signals.
Daily price moves have averaged more than $9, reflecting the uncertainty around supply, infrastructure damage and the pace of diplomatic progress.
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