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Oil prices are on track for a weekly gain of more than 13% as escalating tensions between the United States and Iran revived concerns over potential disruptions to crude supplies through the Strait of Hormuz.

Global equity markets were relatively subdued, with the United States (US) markets closed for Memorial Day and the United Kingdom’s (UK) markets closed for a bank holiday, leaving continental European bourses to set the tone.

Oil prices rose on Thursday as a sharper-than-expected decline in US crude inventories reinforced concerns over tightening supply. Meanwhile, ongoing negotiations between Washington and Tehran helped limit fears of broader escalation in the Middle East.