Oil settles up on renewed US-Iran hostilities and threat of Red Sea closure

Brent crude jumped 4.59 percent to settle at $88.10 a barrel and US West Texas Intermediate rose 4.48 percent to $82.49, both at their highest since mid-June, as escalating US-Iran hostilities raised supply disruption fears. Both benchmarks gained about 16 percent on the week, with Brent on track for a third consecutive weekly gain. Iran targeted vessels transiting the Strait of Hormuz, through which about 20 percent of global oil flows, and pressed Houthis to close the Red Sea route, while Saudi Arabia has already diverted over 70 percent of its crude exports to Yanbu with shipments rising to around 4 million barrels per day from about 973,000 bpd a year earlier.