Oil heads for weekly drop as Middle East supply risks persist
Oil prices are heading for a sharp weekly decline on expectations that the Iran war may de-escalate after President Donald Trump's party lost US Congressional elections, though Middle East supply concerns are limiting further losses. Brent crude futures rose 1.6% to $99.86 a barrel on Friday, while US West Texas Intermediate climbed 1.22% to $91.62, marking a second day of gains. However, both contracts remain on track for weekly drops of about 12%, following an 8% plunge on Wednesday after Democrats swept the midterm elections. Prices rebounded after a surge in tanker attacks in the Gulf and Strait of Hormuz renewed supply concerns. Iran reported three more tankers attacked on Thursday, and analysts noted the country maintains control of the crucial oil shipping route, with flows running under 60% of capacity.