Oil Jumps to $88 as Gulf Fighting Escalates and Tankers Come Under Fire

Brent crude surged about 4.6% on Friday to close at $88.10 per barrel, with WTI topping $79, after fighting in the Persian Gulf escalated sharply. Kuwait said Iran attacked a power and water desalination plant, and a tanker was struck by a projectile off the coast of Oman as Iran continued targeting civilian shipping near the Strait of Hormuz.

U.S. Central Command said it completed a sixth consecutive night of strikes against Iranian military targets, including logistics infrastructure and maritime capabilities. The collapse of last month's fragile truce has again disrupted flows through the strait, which handles roughly 20% of global oil traffic.

Sustained higher crude prices are a tailwind for integrated energy majors such as Chevron and BP, but they compound fuel-cost pressure on airlines and other transport operators heading into the back half of earnings season.