RoydadNaft –  Brent crude futures fell nearly $4, or 3.96%, to $96.70 a barrel. U.S. West Texas Intermediate (WTI) crude futures dropped $3.15, or 3.42%, to $89.04 a barrel.

According to Roydad Naft, oil futures fell more than 3% on Friday but remained on track for significant weekly gains. The decline came amid concerns over energy supply disruptions in the Red Sea and fears of further escalation in the U.S.-Israel conflict with Iran.

Brent futures fell nearly $4, or 3.96%, to $96.70 a barrel at 9:46 a.m. GMT. The contract had settled above $100 for the first time since May in the previous session after Iran-aligned Houthis claimed they had targeted two Saudi oil tankers in the Red Sea.

The contract is still on course for a 9.7% gain this week.

WTI futures also fell $3.15, or 3.42%, to $89.04 a barrel and remain on track for a weekly rise of nearly 8%.

John Evans, analyst at PVM Oil Associates, said: “Key oil production centers or supply routes are under siege from war… The short-term outlook is bullish.”

U.S. President Donald Trump promised “major military punishment” for Iran and its Houthi allies following the Red Sea attacks.

Iran had previously pressed the Houthis to close the Bab el-Mandeb Strait — the gateway to the Red Sea — if U.S. strikes on Iranian power infrastructure continued. The strait is the second-most important energy shipping route after the Strait of Hormuz at the mouth of the Persian Gulf.

The Houthis had announced on Monday that they were imposing a maritime blockade on Saudi Arabia, a country that had diverted its oil exports via pipeline to bypass any Iranian closure of the Strait of Hormuz.

According to preliminary ship-tracking data from Kpler, daily vessel transits through the Strait of Hormuz held steady at three over the past three days. Two other vessels, including the empty very large crude carrier Nobel, entered the Persian Gulf through the strait on Thursday.

Meanwhile, in the Bab el-Mandeb Strait, cargo vessel transits rose to 32 on July 23 from 26 the previous day. Kpler data shows two transits have already been recorded so far on July 24.

Giovanni Staunovo, analyst at UBS, said: “In suitable seas, ships are still moving… so this is not a complete blockade of the kind some may fear.”

JPMorgan analysts noted in a research note that each additional month of oil supply disruption adds roughly $7–8 per barrel to Brent prices and would push monthly average prices to around $114 a barrel if the disruptions last three months.

Elsewhere, Russia said on Friday that its forces had targeted three Ukrainian ports overnight, hitting infrastructure including loading and unloading facilities and fuel storage sites that supported Kyiv’s armed forces.

On Thursday, Kazakhstan’s Energy Ministry said oil companies had temporarily cut production after suspected Ukrainian drone attacks forced the closure of the country’s main Black Sea export terminal.