Oil prices set to end week above $100 for first time in nearly 4 months

Key Points:

• Oil prices rose on Friday, with Brent crude at $108.44 and U.S. West Texas Intermediate at $103.17 per barrel, both benchmarks on track to end the week above $100 for the first time since mid-May due to escalating attacks in the Middle East.
• Iran-aligned Houthis seized Yemen's port of Mocha, threatening Red Sea traffic, while tanker attacks near the Strait of Hormuz continue to restrict Gulf traffic, raising concerns over prolonged supply disruptions.
• U.S. diesel prices surpassed $6 a gallon for the first time, driven by supply disruptions from the U.S.-Iran conflict and Ukrainian attacks on Russian refineries, amid ongoing tensions and retaliatory strikes between the U.S. and Iran.
• Analysts warn that the oil price rally's sustainability depends heavily on China's crude demand and the stability of physical oil flows, with OPEC lowering its 2026 demand growth forecast and oil output declining in August.
• Market uncertainty remains high, with potential for prices to retest March highs near $119.48 per barrel if supply disruptions worsen, while the next price movements will hinge on developments in physical oil supply rather than headlines.