Oil prices climbed on Friday, extending their rally to a fourth consecutive weekly gain and returning to five-month highs as market sentiment was buoyed by concerns over supply disruptions.
By 3:15 pm AEDT (4:15 am GMT) Brent crude futures gained $0.38, or 0.5%, to trade at $81.67 per barrel, recovering from a 0.9% decline in the previous session, while U.S. West Texas Intermediate (WTI) crude futures rose $0.58, or 0.7%, to $79.26 per barrel after a 1.7% drop on Thursday.
The upward pressure on prices follows the Biden administration's latest sanctions targeting Russia’s oil producers and related industries.
The measures, part of broader sanctions aimed at Moscow’s military and sanctions-evasion networks, have disrupted global oil supply chains. Russia's key customers are now seeking alternative suppliers, leading to increased shipping rates as they source barrels from distant regions.
In the Middle East, maritime security officials announced that Yemen's Houthi militia is expected to halt attacks on vessels in the Red Sea following a ceasefire agreement in Gaza between Israel and Hamas.
Despite the anticipated ceasefire, uncertainty lingers. Houthi leaders have indicated they will closely monitor the ceasefire's implementation and warned of a potential resumption of attacks if the agreement is violated.