Oil futures rose Friday, on track for a second straight weekly gain after the Oct. 7 attack on Israel by Hamas that sparked a war that threatens to spillover across the region, potentially endangering the supply of crude.
Oil was lifted in electronic trade late Thursday after a U.S. Navy warship has intercepted multiple missiles near Yemen. A Pentagon press secretary told reporters that a Navy destroyer intercepted three missiles and several drones that were launched by Iran-backed Houthi forces in Yemen, but their target was unknown.
While the conflict so far hasn’t altered the supply picture, “the tense situation in the Middle East does justify a certain geopolitical risk premium for the time being,” said Barbara Lambrecht, commodity analyst at Commerzbank, in a note.