RoydadNaft –  Brent crude futures were unchanged at $95.52 a barrel on Friday, September 4, while U.S. West Texas Intermediate (WTI) rose 7 cents, or 0.1%, to $91.36 a barrel.

Oil prices were little changed on the day but headed for their largest weekly advance since mid-July, as escalating U.S.-Iran tensions lifted the risk premium on Middle East supply.

Fears of further disruption — driven by renewed U.S.-Iran clashes and Ukrainian strikes on Russian refineries — have also pushed average U.S. diesel prices to record levels.

As of 06:45 GMT, Brent futures were steady at $95.52 a barrel. WTI was up 7 cents, or 0.1%, at $91.36. On a weekly basis, Brent was up 7.6% and WTI 10.4%, putting both benchmarks on course for their biggest weekly gains since the week ended July 20.

U.S. strikes this week that killed and wounded dozens of people, including Iranian civilians, marked the sharpest confrontation between the two countries since July. The conflict, which began with U.S. and Israeli attacks in late February, has now entered its seventh month.

Israeli Defense Minister Israel Katz reiterated warnings that Israel would “paralyze” Iranian military and civilian infrastructure, including energy facilities.

ANZ analysts raised their near-term Brent forecast to $95 a barrel on Friday and flagged further upside risk if fighting in the Middle East intensifies.

“The market has entered a sensitive adjustment phase,” they wrote. “Elevated inventories helped absorb the initial supply shock, but the challenge now is to keep the market balanced as those buffer stocks are drawn down.”

U.S. Vice President J.D. Vance told reporters on Thursday that Washington would not negotiate with Iran unless Tehran halted attacks on commercial shipping in the Strait of Hormuz.

Capping some of the upside, Russian President Vladimir Putin said a path to ending the war in Ukraine still exists and that the United States and China are prepared to support a peace deal.

Iran expanded its list of vessels it deems non-compliant and subject to fines, seizure or detention if they attempt to transit the strait. Iraqi tankers remain among the few vessels Tehran has authorized to pass through Hormuz.

Iraq raised oil exports in August to about 2.34 million barrels per day from roughly 1.35 million bpd in July, two Iraqi energy officials said Wednesday. They added that September shipments are also expected to increase, as steep discounts and Iranian transit permits for Iraqi tankers have drawn more buyers.