Oil Set for Second Weekly Rise as Unsettled U.S.-Iran War Crimps Supply

Prices have climbed on concerns the inconclusive state of the U.S.-Israeli war on Iran will mean the continued curtailment of supply from major oil producers such as Saudi Arabia, Iraq, the UAE and Kuwait.

The earlier peace deal between them expired this week with no effort by either side to restart talks and U.S. President Donald Trump threatened economic retaliation against nations supporting Iran.

"Both sides are dug in but lacking the luxury of time to play the waiting game, against a backdrop of crude prices grinding unerringly higher," IG analyst Tony Sycamore said on Friday.

On Wednesday evening, Trump threatened "economic warfare and isolation on an unprecedented scale" against Tehran, warning of consequences for any country that provided "any type of lifeline to Iran".

This week, the United Arab Emirates suspended all financial and economic transactions with Iran until further notice, highlighting the fraught ties between the major Gulf Arab oil producer and Tehran.