Oil prices continue their robust ascent above $100 a barrel, with the latest escalation of hostilities in the Middle East stoking investor concerns over possible additional supply disruptions. West Texas Intermediate (WTI) futures were trading near $104, following a near 7% surge in the prior session, positioning the benchmark for its largest weekly gain since July. Meanwhile, Brent crude settled close to $108, reaching its highest level in nearly four months.

Iran and the United States are increasingly sliding toward a protracted confrontation, with scant signs of an imminent ceasefire or a return to normal energy flows in the region. The conflict has intensified over the past fortnight, marked by American strikes on Iranian tankers, a ballistic missile attack on Jordan, and Houthi operations against Saudi energy infrastructure that forced a partial suspension of operations. Recent increases in Chinese crude purchasing have further tightened the market's supply dynamics.

"The mounting attacks on tankers and the accompanying rhetoric suggest the standoff could last longer than analysts initially anticipated," said Rebecca Babin, senior energy trader at CIBC Private Wealth Group. "Traders remain skeptical of this rally, but the reality is that both the expected timeline for conflict resolution and prospects for a significant normalization of Gulf energy flows have been pushed further out."