Oil prices could climb above $90 per barrel should the shipping disruptions through the Strait of Hormuz due to ongoing fighting in the Middle East be prolonged, according to analysts at UBS.

On Friday, crude prices were on track to notch hefty weekly gains, as traders remain worried that the conflict between Iran and joint U.S.-Israeli forces will close off the vital Strait of Hormuz waterway, through which roughly 20% of the world’s oil supply passes. 

The U.S. dollar regained its footing on Thursday, rebounding after a brief pullback from three-month highs, as an escalating conflict in the Middle East kept investors jittery and drove demand for safe-haven assets.

Earlier hopes of a de-escalation gave way to a fresh bout of uncertainty, with Iran warning that Washington would "bitterly regret" the sinking of an Iranian warship off Sri Lanka. 

Bitcoin retreated on Friday, falling below the key $70,000 level as escalating conflict in the Middle East drove oil prices higher and clouded the outlook for global inflation and interest rates.

The world’s largest cryptocurrency was last down 5.2% at $68,779.0 by 09:40 ET (14:40 GMT), after briefly jumping above $74,000 earlier this week, leaving it still on track for a weekly gain of more than 4%. 

Gold prices gained on Wednesday, following a hefty fall in the previous session, as a weaker dollar prompted investors to dive back into the yellow metal’s safe-haven status. The escalating conflict in the Middle East remained at the top of investors’ minds.

At 14:14 ET (19:14 GMT), Spot gold rose 0.8% to $5,128.80 an ounce, and U.S. Gold Futures gained 0.4% to $5,143.41/oz.