Brent Oil Holds Above $94 as Strait of Hormuz Risk Stays Priced In

Brent crude pushed to new highs above $94 a barrel on Friday, extending a rally that has accelerated since the U.S. tightened its economic isolation of Iran. WTI crude settled near $87, testing resistance at the $86.50-$86.00 zone that has capped gains since mid-July.

The catalyst is the Strait of Hormuz. Iran's Islamic Revolutionary Guard Corps, which controls the country's foreign policy, has kept the strait effectively closed to normal commercial traffic despite a naval blockade and fresh U.S. sanctions. Traders are pricing in a prolonged disruption to physical crude flows through the chokepoint, analysts said.

Iranian President Masoud Pezeshkian said over the weekend that it would be better to end the war and that Iran's