Oil edges lower, heads for 7% weekly gain on Gulf disruptions

Global oil prices edged slightly lower on Friday, August 21, but remained on track to lock in a second straight week of robust gains as the ongoing US-Iran standoff continues to choke Middle Eastern crude shipments.

Brent crude futures slipped 0.3% to $93.55 per barrel, while US West Texas Intermediate (WTI) eased 0.4% to $86.50 per barrel. For the week, Brent has rallied over 7% and WTI more than 8%, hovering near multi-week highs last seen on July 24.

Supply constraints in the Persian Gulf continue to underpin market fundamentals, with commercial tanker transit via the Strait of Hormuz severely curtailed, hindering major producers including Saudi Arabia, Iraq, the UAE, and Kuwait. Sentiment also drew support from remarks by US President Donald Trump, who threatened economic penalties against third nations supporting Iran.

N.Tebrizli