Despite tales of explosions in Iran, oil prices rise by more than 3% to about $90.

 Friday's Asian trading saw a strong increase in oil prices as Middle East tensions resurfaced following reports by Iranian news sources of many explosions throughout the nation that seemed to be Israeli strikes.

According to Iran's Fars News Agency, explosions were reported on Friday in sections of southern Syria, central Iran's Isfahan, and parts of Iraq. According to ABC News, US authorities claimed that Israel has taken revenge on Iran.

By 21:54 ET (01:54 GMT), West Texas Intermediate crude futures expiring in May increased 3% to $85.16 a barrel, while Brent oil futures expiring in June gained nearly 3% to $89.74 a barrel.

Despite turning around most of their weekly losses, both contracts were still expected to finish the week slightly down.

After Iran's blasts, Middle East tensions are once again in the spotlight.
Due to traders' haste to restore a risk premium to oil prices, the Middle East situation has escalated due to Israel's possible response.

Given the explosions' locations, especially in Isfahan, it's possible that Israel also targeted Iran's nuclear facilities.

TOnly one day prior, Iranian officials had forewarned Israel about potential reprisal strikes, with a specific focus on Tehran's nuclear facilities. Tehran stated that if Israel attacked the nation's nuclear sites—which are currently only utilised for peaceful, power-generating endeavors—it may reevaluate its development of nuclear weapons.

Any such actions by Iran might signal a significant intensification of the confrontation in the Middle East.

About a week has passed since Iran launched a missile and drone strike against Israel last week in reprisal for what it believed to be an Israeli strike on an embassy in Damascus. This suggests that possible Israeli strikes on Iran are imminent.

According to previous UN estimates, Iran was enriching uranium up to 60%, which is higher than what is needed to generate commercial power. However, it was also less than the 90% enrichment needed to make an atomic weapon.

Weekly losses for oil are still anticipated.
However, oil prices were still expected to decline over the previous seven days, even after Friday's improvements.

A big factor influencing oil prices this week was the strengthening of the dollar, which came after encouraging U.S. economic statistics and several Fed members' warnings that interest rates would stay higher for longer.

A rising dollar adds a currency-related premium for foreign customers, which puts pressure on the demand for crude.

Fears that tight policy will impede global economic growth are exacerbated by the possibility of higher-for-longer rates, which is also bad news for the demand for oil.

It appeared that traders had mostly priced in the possibility of a June rate cut by the Fed.

The United States' decision to reinstate its oil sanctions against Venezuela, based on the country's inability to hold free and fair elections, nevertheless prevented much larger losses in crude.

This week, the United States and its allies imposed more sanctions on Iran's oil sector.