Brent, US Light Sweet Crude Oil Climbs by 10%
Brent and US West Texas Intermediate light sweet crude oil prices saw strong weekly gains of about 10% on a week-on-week basis as renewed concerns over US-Iran tensions and possible disruptions to crude flows through the Strait of Hormuz kept geopolitical risks at the centre of market sentiment
At the last look, Brent price climbed by about 10% to close the week at $108.55 per barrel. US benchmark West Texas Intermediate light sweet crude oil (WTI) also increased 9.5% on a weekly basis to $104.54 per barrel, compared with $95.42 a week earlier.
Oil markets started the week on a strong note, with Brent climbing back above $105 a barrel as stalled negotiations between Washington and Tehran fueled concerns over prolonged instability in the Gulf.
Investors remained focused on the Strait of Hormuz, one of the world’s most important oil shipping routes, amid uncertainty over whether the fragile ceasefire between the US and Iran could hold.
Prices accelerated higher on Tuesday after Trump cast doubt on the durability of the truce, saying the ceasefire was on “massive life support.”
Speaking to reporters at the Oval Office, Trump said the ceasefire was in an “unbelievably weak” state. “I would call it the weakest right now, after reading that piece of garbage,” referring to the response Iran sent Pakistani mediators on Sunday.
The comments strengthened expectations that tensions in the Middle East could continue, supporting crude prices as traders priced in a higher geopolitical risk premium.
Oil prices climbed more than 3% later Tuesday as fading hopes for a lasting ceasefire revived concerns about possible supply disruptions in the region.
By midweek, investor attention briefly shifted toward Trump’s visit to China and meetings with Chinese President Xi Jinping, though developments surrounding Iran remained the market’s main focus.
Prices eased slightly during Wednesday trading as investors took a more cautious approach ahead of the Trump-Xi talks and assessed mixed signals from Washington and Tehran. Still, the downside remained limited because of persistent concerns over supply security.
Trump’s comments that Washington was considering expanding the previously suspended “Project Freedom” initiative to secure commercial shipping through the Strait of Hormuz also kept fears of broader regional escalation alive.
Economic data from the US was another key driver during the week.
Higher-than-expected inflation data raised concerns that rising energy costs could complicate the Federal Reserve’s interest rate outlook and eventually weigh on fuel demand.
Still, analysts said geopolitical risks continued to overshadow broader economic concerns for now.
Toward the end of the week, fresh supply data provided additional support to prices. The Organization of the Petroleum Exporting Countries (OPEC) said its crude production fell by 1.72 million barrels per day in April to 18.98 million barrels per day.
The International Energy Agency (IEA) also reported that global oil supply declined by 1.8 million barrels per day last month because of attacks on energy infrastructure in the Middle East and restrictions on tanker traffic through the Strait of Hormuz.
Meanwhile, the US Energy Information Administration (EIA) said US commercial crude inventories fell by 4.3 million barrels last week, signaling tighter supply conditions.
On Friday, oil prices extended gains after reports emerged that US and Israeli officials had discussed possible scenarios for renewed military action against Iran.
Israeli and US military officials held talks on possible scenarios for renewed military action against Iran during the past week, with Tel Aviv pushing for a return to the conflict, according to claims on Thursday by Israeli public broadcaster KAN.
The broadcaster said senior Israeli military officials and representatives from US Central Command (CENTCOM) discussed possible renewed operations against Iran, along with other US options, including tightening a maritime blockade in the Strait of Hormuz as part of the so-called “Project Freedom.”
According to the report, Israel conveyed a message to Washington expressing its interest in resuming military action, arguing that the war with Iran had ended “earlier than it should have.”
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