Brent Crude Up 7% This Week

Brent crude oil futures rose past $108 per barrel on Friday and were on track for a weekly gain of around 7% as the Strait of Hormuz remained effectively closed, keeping global supply concerns elevated. Efforts to end the conflict remain stalled, with disruptions continuing to impact energy markets and fuel inflation fears. President Donald Trump delivered mixed messages on the situation, first saying the US did not need the Strait open before later stating alongside Chinese President Xi Jinping that “we want the straits open.” The International Energy Agency warned this week that the oil market could remain severely undersupplied until October even if fighting ends next month. Oil inventories continue to tighten, while tanker traffic through Hormuz remains extremely limited, with only a small number of vessels managing to leave the Persian Gulf since the conflict began.

Brent crude futures climbed to $108 per barrel on Friday and were on track for a weekly gain of around 8%, as risks in the Strait of Hormuz persisted amid stalled US-Iran peace talks. President Trump on Thursday warned Iran to reach a deal or face “annihilation,” saying his patience with Tehran was running out. His remarks came even as Iran said around 30 ships had crossed the Strait since Wednesday evening. The US and Iran failed to agree on a US-drafted proposal earlier this week, leaving the key waterway largely closed. Optimism for a lasting ceasefire has also faded. Meanwhile, the IEA reported that crude and fuel flows through the Strait fell by around 4 million bpd in March and April, warning that the global oil market could remain materially undersupplied through October even if the conflict is resolved next month. Separately, Trump said China wants to buy oil from the US amid ongoing challenges in reopening the Strait, with ship attacks and seizures reported this week.

Brent crude futures strengthened above $107 per barrel on Friday and were on track to rise over 6% for the week, as diplomatic attempts to end the US-Iran conflict continued to stall, leaving the strategically crucial Strait of Hormuz effectively closed. The key shipping route remains under a dual blockade that has emerged as a central obstacle in negotiations, with President Donald Trump saying the current ceasefire was on “massive life support” after dismissing Tehran’s latest response to his peace proposal. Meanwhile, the IEA reported that crude and fuel flows through the Strait of Hormuz dropped by around 4 million barrels per day in March and April, warning that the global oil market could stay materially undersupplied through October even if the conflict is resolved next month. Separately, President Trump said China wants to buy oil from the US amid persistent challenges in reopening the Strait of Hormuz, with ship attacks and seizures reported this week.