Brent crude futures rose 0.94% to $106.06 a barrel on Friday. West Texas Intermediate increased 0.73% to $96.56. These gains represent the second-largest weekly increase since the conflict began.
Tensions escalated after Iran released footage of commandos seizing a cargo ship. President Trump issued a shoot and kill order for any Iranian boats attempting to lay mines. This order specifically targets vessels in the critical Strait of Hormuz waterway.
The effective closure of the strait chokes off nearly 20% of the world's oil and natural gas supply. Analysts noted that the geopolitical premium in oil prices is increasing as diplomatic efforts stall. Prospects for a peaceful resolution continue to diminish.