Oil heads for weekly gain

NEW YORK:

Oil prices rose by 3% on Friday after the US and Iran stepped up attacks across the Gulf, with shipping threatened by a potential Red Sea closure on top of the restricted traffic through the Strait of Hormuz.

Brent crude futures rose by $2.49, or 2.96%, to $86.72 a barrel by 1550 GMT. US WTI futures were up $2.48, or 3.14%, at $81.43.

For the week, both benchmarks were headed for a 14% increase, with Brent on track for a third consecutive weekly gain and WTI set for its second.

Diesel refining margins hit record highs on Friday, with low-sulphur gasoil futures touching $66.25 over Brent crude.

Iran said it launched more strikes on US facilities in the Middle East on Friday, including the first direct attack in Syria, after a sixth straight night of US strikes on Iranian military facilities.

American forces had begun a new wave of strikes against Iran to further degrade Iranian military capabilities, US Central Command said on Thursday.