Barclays PLC indicated on Friday that Brent crude oil could test $120 per barrel if conflicts in the Middle East continue for several more weeks.

The bank added, "These figures may appear excessively high, particularly given the generally pessimistic outlook for oil markets this year. However, we reiterate that compared to the Russia-Ukraine conflict, current fundamentals are stronger and risks are greater—levels that were previously reached."

As tensions between the U.S. and Israel escalate, the Strait of Hormuz, a critical passage controlled by Iran, has effectively been shut down, restricting oil supplies from the Middle East and driving a sharp surge in oil prices.

The Strait of Hormuz transports approximately one-fifth of the world's crude oil, petroleum products, and liquefied natural gas. Shipping through the strait has been disrupted after Iran threatened and opened fire on passing vessels.

As of 02:57 Beijing time, Brent crude futures were trading around $93.60 per barrel, while West Texas Intermediate crude futures traded at $91.62.

Barclays noted that since the conflict began, the volume of oil stranded on tankers in the Middle East Gulf has increased by about 85 million barrels. The bank added that risks to oil prices remain skewed to the upside.

U.S. President Donald Trump demanded Iran's "unconditional surrender" on Friday, a dramatic escalation of his stance one week after launching joint military actions with Israel. This move could complicate negotiations aimed at swiftly ending hostilities.

Barclays also warned that production disruptions in Iraq and Kuwait could, over time, spread to the United Arab Emirates and even Saudi Arabia.

The bank stated that under a current 10% tail-risk scenario, Brent crude could reach $150 per barrel by the end of this month.