Oil Soars in Strongest Weekly Rally Since 2022

WTI crude oil futures climbed above $81 per barrel on Friday and were on track for their biggest weekly jump since 2022 as the escalating Middle East conflict severely disrupted global energy flows. The crisis has almost halted shipping through the Strait of Hormuz, a crucial route that normally handles about 20 million barrels of oil and petroleum products per day. Commercial traffic through the strait has nearly stopped due to security risks, insurance issues and operational uncertainty. Some producers have started shutting in output, tightening markets further. Meanwhile, tensions remain high after Abbas Araghchi said Iran was not seeking negotiations. The US signaled possible actions to ease pressure, including the potential release of oil from strategic reserves, while also temporarily allowing India to purchase some Russian crude already at sea. Saudi Arabia raised oil prices for Asian buyers and redirected shipments through Red Sea ports to bypass Hormuz.

WTI crude oil futures trimmed earlier losses to about $81 per barrel on Friday, remaining on track for the biggest weekly jump since early 2022. The earlier drop of as much as 3% followed signals from the US of near-term measures to curb surging energy prices, potentially including releases from strategic crude reserves, relaxed fuel-blending requirements, and allowing the Treasury to trade oil futures. Still, crude marked about a 20% gain this week, as the Middle East conflict has severely disrupted energy markets, with shipping through the Strait of Hormuz nearly halted. Hostilities showed no sign of easing, with Iran denying reports of requesting a ceasefire and signaling no willingness to negotiate. Iran also launched missiles and drones across the Gulf, striking an oil refinery in Bahrain, while Israel continued airstrikes on Tehran and the US suspended operations at its embassy in Kuwait.

WTI crude futures slipped to around $80 per barrel on Friday, halting a five-day advance after the Trump administration signaled it is considering several options to address the surge in oil and gasoline prices amid the war in Iran. Potential measures include releasing crude from US emergency reserves, granting waivers on fuel-blending requirements, and the US Treasury trading oil futures. Still, oil prices have jumped nearly 20% this week, putting them on track for the largest weekly advance since 2022 as the Middle East conflict disrupted global energy flows by effectively halting shipments through the Strait of Hormuz. US President Donald Trump said he should have a role in selecting Iran’s next leader, while Israel has continued conducting airstrikes on Tehran. Meanwhile, Iranian Foreign Minister Abbas Araghchi denied reports that Iran had requested a ceasefire and signaled no willingness to enter negotiations.