Oil prices rose sharply on Friday as military hostilities between the United States and Iran intensified, disrupting Gulf oil flows and threatening a critical export route.
Brent crude futures gained 0.83% to $84.93 a barrel, while U.S. West Texas Intermediate futures rose 1.03% to $79.76 a barrel. Both benchmarks have climbed nearly 12% this week.
The U.S. launched new waves of air strikes near Iran's southern coast, breaking a recent truce. Iran countered with missile and drone attacks on U.S. military bases in neighboring states.
Adding to supply concerns, Tehran has instructed its Houthi allies to prepare to close the Red Sea oil route if U.S. strikes target Iranian power infrastructure.
"The potential threat of the Red Sea becoming another major supply disruption point is further complicating the global oil outlook," said Tim Waterer, chief market analyst at KCM Trade.
International Energy Agency Executive Director Fatih Birol warned the situation remains critical.