Oil prices rallied towards 65 dollars per barrel on fears of a U.S. military attack on Iran that would disrupt flows from the Middle East, which provides more than 20 per cent of the world’s oil output.
Brent crude was up 42 cents, or 0.66 per cent, at 64.87 dollars a barrel by 0850 GMT. The global benchmark jumped 4.3 per cent on Thursday and was up around five percent for the week, in its first weekly gain in five weeks.
U.S. West Texas Intermediate crude was up 21 cents, or 0.38 per cent, at 57.28 dollars a barrel. The U.S. benchmark surged 5.4 per cent on Thursday and was on track for a 9 per cent increase this week.
“Crude prices are spiking on increased Middle East tensions after Iran shot down a U.S. drone in what the U.S. claims is international airspace,” said Jason Gammel from Jefferies.
Iran said it had shot the drone over its territory.
Iranian officials told Reuters on Friday that Tehran had received a message from U.S. President Donald Trump through Oman overnight warning that a U.S. attack on Iran was imminent.