Crude oil futures rose on Friday, with Brent crude reaching a five-month high amid escalating tensions in the Middle East. By 4:50 a.m. ET, front-month Brent crude oil futures were up 0.7% at $113.50 per barrel, while U.S. West Texas Intermediate crude futures increased 0.8% to $100.24 a barrel.
Brent futures were tracking a weekly gain of 3.3%, which would mark their third consecutive week of increases. The contracts were trading at their highest level since early May. In contrast, WTI futures were on pace for a weekly decline of 1.1%, which would end two straight weeks of gains.
The price movements follow statements from U.S. President Donald Trump on Thursday, in which he accused Iran of fabricating reports of attacks on ships transiting the Strait of Hormuz. Trump wrote on Truth Social that Iran was attempting to drive up oil prices ahead of the U.S. midterm election. He claimed Iran was inventing false reports of hits and mines, arguing that more oil was currently passing through the strait than before the conflict began.
Iran’s Islamic Revolution Guards Corps disputed the characterization of calm waters, stating on Thursday that four vessels had been struck and caught fire in the Persian Gulf. The corps, as reported by the Iranian state-affiliated Tasnim news agency, also claimed that three additional vessels had struck mines in the Strait of Hormuz.
Separately, Iran's army chief reportedly stated that the country's military is fully prepared for "asymmetric warfare" following an increase in its capabilities. This announcement occurred as regional instability affected energy operations in Saudi Arabia.
Reuters reported that Saudi Aramco told staff to evacuate its Dhahran headquarters and work remotely. The order followed a series of attacks by Iran-backed Houthi rebels. The Houthis have launched strikes on Saudi airports and some Aramco offices in recent weeks, which have resulted in multiple fatalities.