(RTTNews) – Oil prices were a tad lower on Friday but headed for sharp monthly gains on fears of further disruptions to Middle Eastern energy supplies.
Brent crude futures fell slightly at $86.85 a barrel but were on track to gain more than 20 percent for the month.
WTI crude futures slipped 0.3 percent to $83.31 following reports that more oil was passing through the Strait of Hormuz. On a monthly basis, the contract was set for a gain of more than 15 percent.
A drone strike on gas vessels at Egypt’s Damietta port has intensified fears of the U.S.-Iran conflict widening across the Middle East, drawing more countries into the roughly five-month-old war and posing threats to navigation through the Suez Canal, one of the last remaining export routes for Saudi oil.
Iran’s Islami Revolutionary Guard Corps (IRGC) destroyed two drone hangars, along with a fuel storage facility at the U.S.-operated Ali Al Salem airbase in Kuwait and said that Tehran’s military actions would persist until the complete eviction of U.S. “occupying and looting forces” from the region.
While tensions remain high in the Gulf, media reports indicate a moderate recovery of sea traffic through the Strait of Hormuz.
U.S. President Donald Trump announced that his so-called “Board of Peace” reached an agreement for the complete disarmament of Palestinian Hamas militants and other armed groups in Gaza.
A Hamas official said discussions were “positive” and “making progress” while cautioning that Israel must approve the phased disarmament agreement before Hamas could implement it.
Elsewhere, Saudi Arabia has announced a mission to form an international alliance to guard the Red Sea from attacks on shipping by Iran-backed Houthis in Yemen.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
www.nasdaq.com