WTI Set for Sharp Weekly Loss

WTI crude oil futures fell 7% to around $95 per barrel this week as President Donald Trump said the ceasefire with Iran remained in place despite fresh clashes between US and Iranian forces, reinforcing hopes that a broader agreement could still be reached. US Central Command said American forces struck military targets in Iran after Tehran fired on three destroyers in the Strait of Hormuz, though officials stressed they were not seeking escalation. Trump later said the vessels had safely exited the strait without damage. Oil markets remain focused on Hormuz, which has been effectively closed since late February, disrupting global crude flows and forcing production shutdowns across the region. Traders continue balancing hopes for diplomacy against the risk of renewed escalation. The International Energy Agency warned the conflict is removing around 14 million barrels per day from global supply, while the UAE reported intercepting missiles and drones near the strait.

WTI crude futures rose above $95 per barrel on Friday, recouping some losses from earlier in the week as fresh clashes between the US and Iran threatened to derail diplomatic efforts to end the conflict. US Central Command said American forces intercepted Iranian attacks and carried out defensive strikes while guided missile destroyers passed through the Strait of Hormuz, emphasizing that the military does not intend to escalate tensions further. Meanwhile, the Trump administration is awaiting Iran’s response to a proposal aimed at reopening Hormuz and ending the nearly 10-week conflict, with tensions remaining elevated across both the Persian Gulf and Lebanon. According to reports, Tehran is expected to deliver its response through Pakistan within the next two days. Separately, the IEA warned that the war was disrupting roughly 14 million barrels per day of global oil supply and noted that any post-conflict production recovery would likely proceed gradually.

WTI crude oil futures erased sharp losses to $96 per barrel on Thursday as markets continued to wait for clarity on potential supply from the Persian Gulf. Iran was still reviewing the memorandum sent by the US to end their two-month war, which would include the gradual resumption of tanker flows from the Middle East. President Trump had signaled optimism on Iran agreeing to the concessions, which drove oil and refined product prices to plunge last session. Still, the pullback was limited as global oil supply is expected to remain muted even if restrictions in the Strait of Hormuz are lifted. Resumption of production capacity in GCC states is due to be slow do to damage and insurers are reluctant to service tankers crossing the Strait following reports of strikes in the region. The halt in exports from the key region drove the US to deplete its product stocks, with gasoline inventories dropping for 12 consecutive weeks, while those for distillate fuel fell for nine weeks.