Oil prices increased on Friday, the last trading day of the week, amid supply concerns fueled by drone attacks on oil fields in northern Iraq and fresh European Union (EU) sanctions banning imports via Nord Stream pipelines.
The international benchmark Brent crude increased by around 0.17%, trading at $69.01 per barrel at 10.46 a.m. local time (0746 GMT), up from $68.89 at the previous session's close.
The US benchmark West Texas Intermediate (WTI) crude increased by 0.18%, settling at $66.43 per barrel, compared to $66.31 in the prior session.
Three oil fields in northern Iraq were hit by bomb-laden drones early Wednesday, causing significant infrastructure damage to infrastructure but no casualties, the Kurdish Regional Government (KRG) said.
In a statement, the KRG's Ministry of Natural Resources condemned the attacks on the Tawke, Peshkhabur, and Ain Sifni oil fields in Zakho and Duhok.
"Although the attacks did not result in any casualties, they caused significant damage to the infrastructure of the fields," the statement read.
The US Embassy in Iraq has condemned the drone attacks that hit oil fields in the Iraqi Kurdish region, according to an official statement.
The US "condemns the recent drone attacks throughout Iraq, including the July 14 and July 15 drone attacks on critical infrastructure at the Khormala and Sarsang oil fields" in the KRG, said the embassy in a statement.
It urged the Iraqi government to "exercise its authority to prevent armed actors from launching these attacks against sites within its own territory, including locations where Iraqi and international companies have invested in Iraq's future."
The Sarsang field is managed by HKN Energy, a privately owned US oil and gas firm operating in Iraq's Kurdish region.
The escalating violence and geopolitical tensions in the oil-rich Middle East have fueled concerns over potential supply disruptions, contributing to the uptick in prices.
Meanwhile, the EU has approved one of its "strongest" sanctions packages on Russia, including a ban on imports from the Nord Stream pipelines and tighter restrictions on oil exports, the bloc's foreign policy chief said on Friday.
"We are standing firm. The EU just approved one of its strongest sanctions package against Russia to date," Kaja Kallas said on X.
"Nord Stream pipelines (imports) will be banned. A lower oil price cap. We are putting more pressure on Russia's military industry, Chinese banks that enables sanctions evasion, and blocking tech exports used in drones," she added.
Nord Stream is a network of offshore natural gas pipelines running under the Baltic Sea from Russia to Germany.
The latest sanctions and regional instability have intensified market fears, reinforcing the recent rise in global oil prices.
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr