Oil prices increased after U.S. President Donald Trump threatened to strike Iranian infrastructure in response to attacks on shipping in the Strait of Hormuz.
Iran warned it would retaliate against U.S.-linked infrastructure if Washington follows through on those threats.
On Thursday, oil prices rose after a tanker was struck by an unknown projectile off the coast of Saudi Arabia.
Brent crude futures for September delivery gained 1.6% to $95.61 per barrel, while U.S. West Texas Intermediate crude futures advanced around 1.04% to $87.72.
Trump stated that the U.S. would destroy Iranian bridges or power plants if Iran attacks ships.
Iran responded by saying that if the U.S. targets Iranian infrastructure, it would retaliate against U.S.-linked assets.
HSBC noted that the recent rally in oil prices reflects renewed concerns over the Strait of Hormuz.
