Al-Attiyah Energy Report: Escalating Tensions Push Oil Prices to Their Highest Level in Over a Month

Oil prices surged by more than 4% last Friday, reaching their highest level in over a month as escalating tensions between the United States and Iran fueled concerns over potential disruptions to global energy supplies.

Brent crude settled at $88.10 per barrel, while U.S. West Texas Intermediate (WTI) closed at $82.49 per barrel, with both benchmarks posting weekly gains of nearly 16%.

The rally followed heightened geopolitical tensions after U.S. strikes targeted infrastructure inside Iran, prompting Tehran to launch attacks on U.S. facilities in the region and energy infrastructure in Kuwait. Concerns over maritime shipping also intensified as oil flows through the Strait of Hormuz declined sharply and Iran threatened to expand disruptions to the Red Sea, according to a report by the Al-Attiyah Foundation.

Meanwhile, spot prices for liquefied natural gas (LNG) in Asia climbed for the fourth consecutive week, reaching their highest level in nearly four months amid renewed concerns over supply disruptions through the Strait of Hormuz.

The benchmark price for September deliveries to Northeast Asia rose to $20.10 per million British thermal units (MMBtu). Ongoing geopolitical tensions have delayed expectations for the resumption of LNG shipments through the Strait until October or November, while strong summer cooling demand and lower hydropower generation continued to provide additional support to Asian LNG prices.