Crude Oil Hits 4-week High

WTI crude futures fell to almost $101 per barrel on Friday, trimming weekly gains, after Pakistani officials confirmed that Iran had sent an updated peace proposal and it was delivered to the US government. Meanwhile, President Trump faces a 60-day War Powers deadline over military action in Iran. Under the 1973 law, troops must be withdrawn within 60 days unless Congress authorizes the deployment, which it has not done. The administration says a ceasefire reached three weeks ago has “terminated” hostilities.

WTI crude futures held above $105 per barrel on Friday and were set for a second weekly gain, amid dimming prospects for a US-Iran peace deal and expectations that the Strait of Hormuz would not reopen anytime soon. President Donald Trump reaffirmed that the US would maintain its naval blockade of Iranian ports to intensify economic pressure. Iran’s supreme leader Mojtaba Khamenei also dampened prospects for a deal, pledging not to relinquish the Islamic Republic’s nuclear or missile capabilities and indicating that Tehran would retain control over the strait. Meanwhile, analysts cautioned that several countries could soon face acute oil shortages, as the final shipments that departed the Persian Gulf have already arrived at their destinations. US crude exports surged to record levels last week, with global buyers increasingly turning to American producers to offset disrupted Middle Eastern supply.

WTI crude futures turned lower after briefly touching a 4-year high of $111 amid reports that U.S. President Donald Trump would be briefed on expanded military options in Iran. According to Axios, the briefing from US Central Command chief Admiral Brad Cooper signals that renewed combat operations are being seriously considered, with a plan for a short and intense wave of strikes reportedly under review. Tensions remain elevated despite a ceasefire holding since early April, as US and Iranian blockades have effectively shut the Strait of Hormuz, cutting off a major share of global oil flows and driving what the International Energy Agency has called an unprecedented supply shock. Meanwhile, US crude exports have surged to record levels as buyers seek alternative supply.