FX.co ★ Oil Heads for Weekly Gain

Crude oil held above $79 per barrel on Friday and was poised to gain more than 11% for the week, as mounting US–Iran tensions deepened fears of supply disruptions in the Middle East. The US carried out multiple strikes against Iran over the week, reportedly hitting an oil tanker near the country’s main export terminal — the first such incident since Washington reimposed a blockade on Iranian ports.

President Donald Trump also signaled that the US could target Iranian infrastructure as soon as next week if ongoing diplomatic efforts fail to deliver a breakthrough. In response, Tehran has reportedly instructed Yemen’s Houthi rebels to close the Bab el-Mandeb Strait — a vital corridor for Saudi crude shipments through the Red Sea — should Iran’s power infrastructure come under attack.

Shipping traffic through the Strait of Hormuz has already dropped sharply amid the latest flare-up, although some vessels continue to transit the key waterway.