Brent crude rose on Friday as renewed tensions in the Middle East pushed traders to price in possible supply disruptions. U.S. Warnings to shipping firms and reports of diplomatic talks fed the market move. An explosion that killed 14 members of Iran's Islamic Revolutionary Guard Corps and reports of diplomatic talks added to uncertainty.

Oil markets moved sharply on Friday. Brent touched $109.96 a barrel by 12:25 GMT. West Texas Intermediate slipped to $102.59, after earlier swings. For the week, Brent and WTI were on track for solid gains.

Prices had already shown wild intraday swings. Front-month Brent earlier surged to $126.41, its highest since March 2022, before trimming gains. Traders said the swings matched shifting signals from both the ground and diplomatic channels.

Events pushing prices higher

Market pressure came from several developments. A blast in northwest Iran killed 14 members of the Islamic Revolutionary Guard Corps, Nournews reported. The outlet said the blast involved leftover munitions from recent strikes. State news agency IRNA said Tehran had sent a revised proposal for talks to Washington through Pakistani intermediaries.

At the same time, the U.S. Issued a warning to global shipping companies about potential sanctions risk tied to transit tolls for passage through the Strait of Hormuz. The advisory accompanied a new round of Iran-related sanctions posted by the U.S. Treasury. Those actions raised concerns about the security of seaborne crude flows.

How the market reacted

Traders priced in a higher chance of disrupted exports from the Gulf. That pushed crude prices up despite intermittent dips.

For the week, Brent was set for about a 4.5% rise, and WTI for roughly an 8.9% gain, reflecting tighter sentiment across benchmarks.

Mastheads

The combination of a deadly blast, sanctions and formal U.S. Advisories made shipping through the Strait of Hormuz a focal point. Iran also continued to restrict movement through the strait, according to reporting. U.S. Naval actions near the waterway have constrained some Iranian exports, the reporting added.

U.S. President Donald Trump commented on the diplomatic track. He said negotiations with Iran were being conducted by phone and added he was ‘‘not sure’’ the talks would lead to a deal. ‘‘I am not happy,’’ he said about Tehran’s latest proposal. His remarks signaled both ongoing diplomacy and persistent bilateral friction.

Wider risk context

The World Economic Forum’s Global Risks Report 2026 frames such disruptions as part of a complex risk picture. The report analyzes global risks across immediate, short-to-medium and long-term horizons and draws on a survey of more than 1,300 experts. That framework helps decision-makers weigh near-term shocks like supply interruptions against longer-term priorities.

In markets, short-term shocks can trigger rapid price moves. That was visible in oil this week. Prices spiked when newsflow suggested a real risk to physical deliveries. They fell back when diplomatic signals or other factors eased immediate fears.

For oil consumers, producers and traders, the recent moves change near-term calculations. Refiners and shipping firms face higher uncertainty about routes and costs. Traders reprice risk into futures and option positions, which can widen volatility even further.

Supply and trade implications

Restrictions on passage through the Strait of Hormuz, plus naval measures, tighten the corridor for a large share of seaborne crude. And the U.S. Advisory flagged potential legal and financial risks for companies that pay transit tolls. Those layers affect both volumes and insurance costs for tankers.

When shipments slow or insurers demand higher premiums, supply availability to consuming regions can tighten. That dynamic was already reflected in this week’s weekly gains for Brent and WTI. It also helps explain why prices can swing sharply on short notice when new incidents occur or diplomatic steps change the risk calculus.

Market participants are now watching both the diplomatic track and operational developments at sea. Tehran’s reported proposal to Washington via a mediator offered a possible opening. But public comments from U.S. Officials and the new sanctions kept a risk premium in place.

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Brent earlier surged to $126.41 a barrel, its highest level since March 2022.

This article was created with AI assistance.