Oil prices rise, post 16% weekly gain

Oil drilling rigs

Oil prices surged at Friday's close, posting broad weekly gains as escalating exchanges of attacks between the US and Iran, continued disruptions to shipping through the Strait of Hormuz, and growing concerns that risks could spread to the Red Sea lifted the market.

The military confrontation between the US and Iran has disrupted oil flows through the Strait of Hormuz, which handled about 20% of global oil supplies before the conflict erupted, as Iran targeted vessels transiting the waterway and tightened restrictions on maritime traffic.

Market concerns were further heightened by reports of Iranian threats to close the Red Sea after Tehran reportedly asked the Houthi movement to shut the Bab al-Mandab Strait if the United States targeted Iran's energy infrastructure.

In a separate development, Ukraine said it struck a Russian oil refinery in the Yaroslavl region on Thursday, extending Kyiv's large-scale attacks on Russia's energy infrastructure as the country grapples with fuel supply shortages.