US-Iran tension and Red Sea threat raise oil prices by 5 percent

The escalation of military clashes between the US and Iran and the threat of the closure of the Red Sea caused a jump of about 5 percent in oil prices on Friday. A barrel of Brent crude rose to $88.10 for September delivery in London's futures markets, while West Texas Intermediate (WTI) crude closed at $82.49. Both benchmark prices gained more than 15 percent in value in a single week.

The developments came as clashes resumed following US President Donald Trump's termination of the agreement on July 7. Friday marked the sixth consecutive day of mutual bombardment between Washington and Tehran. On Tuesday, Trump reimposed a naval blockade on Iranian ports and vessels following Iranian attacks on commercial ships in the Strait of Hormuz.

While it was announced that the US military struck dozens of Iranian military targets on Thursday, Iran reported destroying a radar system and several aircraft fuel tankers in Syria and Qatar. Tehran also announced that it conducted missile and drone attacks on American targets in regional countries such as Bahrain, Kuwait, and the United Arab Emirates (UAE), resulting in casualties among US soldiers.