Brent crude and U.S. West Texas Intermediate (WTI) futures recorded steep weekly losses despite ending Friday slightly higher, as investors weighed renewed military tensions between Washington and Tehran following the U.S. midterm elections.
Brent crude gained 3 cents to settle at $98.32 per barrel, while WTI rose 31 cents to $90.83. Brent crude fell more than 16% over the week, while WTI declined nearly 13%, despite modest gains in Friday’s trading session.
US-Iran Tensions Keep Oil Supply Risks in Focus
The price moves came as investors assessed whether the end of the U.S. midterm elections could open the door to renewed action against Iran, which could threaten Middle East oil supplies.
Bob McNally, founder and president of Rapidan Energy Group, told CNBC’s Squawk Box Asia that there is an 80% chance fighting will resume. He also warned that both oil benchmarks could rise above $100 a barrel.
“As long as that core difference in that deal space is absent, the escalation dynamic remains in place,” McNally said.
Diplomacy and Hormuz Supply Risks
Diplomatic prospects remain in focus after Iran reportedly sent Washington a nuclear proposal through Qatar.
Meanwhile, Iran’s Revolutionary Guards reported three additional attacks on oil tankers in the Strait of Hormuz on Thursday, highlighting continued security risks to a critical global oil shipping route.
Last month, OPEC+ agreed to keep its December 2026 production targets unchanged. The decision followed the alliance’s phased rollback of 1.65 million barrels per day in production cuts, completed in September.
According to American Automobile Association data, the national average price of regular gasoline stood at $4.0688 per gallon on Friday, about 19% lower than its record high of $5.0165 set on June 14, 2022.
Diesel prices averaged $6.2305 per gallon on Friday, approximately 4.5% below the record high of $6.5276 recorded on Sept. 22, 2026.
Adding a domestic political dimension, Donald Trump Jr. said higher gasoline prices linked to the Iran conflict contributed to Republican losses during the midterm elections. His remarks highlighted the domestic political consequences of elevated energy costs.
Oil prices have remained volatile throughout 2026 as the U.S.-Israel war with Iran and the Russia-Ukraine conflict have disrupted production, refining and transportation. The International Energy Agency (IEA) had highlighted supply losses, attacks on energy infrastructure and constraints on global oil shipments.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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