Oil Market Sees Weekly Surge in Prices over Supply Risks
Oil market ended the week mixed, with a surge in Brent price on concerns over potential supply disruptions linked to a possible US blockade of the Strait of Hormuz, while easing geopolitical tensions and revived hopes for talks with Iran pressured the market.
International benchmark Brent crude traded at $96.21 per barrel, up 1.06% from last Friday’s close of $95.20. US benchmark West Texas Intermediate (WTI) declined 5.5% to $91.26 per barrel, compared with $96.57 a week earlier.
Prices started the week higher on mounting concerns that global supply could face prolonged disruptions after US President Donald Trump signalled a potential blockade of the Strait of Hormuz.
On April 12, Trump said the US would block “any and all ships” entering or leaving the Strait after talks with Iran in Islamabad failed to produce a breakthrough to end weeks of conflict in the Middle East.
Later on Sunday, US Central Command (CENTCOM) announced that it will begin implementing a naval blockade of all maritime traffic entering and exiting Iranian ports on Monday at 10 a.m. ET (1400 GMT).
Prices retreated on Tuesday as renewed optimism around possible US–Iran talks eased supply concerns, following a rally of more than 8% triggered by the blockade announcement.
US Vice President JD Vance said that talks with Iran in Pakistan made “a lot of progress,” but cautioned that a failure to fully reopen the Strait of Hormuz could “fundamentally change” the trajectory of negotiations.
Oil extended losses on Wednesday as signs of diplomatic progress between Washington and Tehran helped calm markets, with Trump indicating the conflict could be nearing an end and talks might resume within days.
Oil prices edged higher on Thursday as US warnings of potential secondary sanctions on buyers of Iranian oil heightened supply concerns and a larger-than-expected drop in US crude inventories supported a high demand outlook.
Oil prices edged lower on Friday as optimism over a potential US–Iran agreement eased geopolitical risk sentiment, although ongoing tensions in Lebanon capped losses. NGX Posts N8.66trn Weekly Gain Amid Trading Surge
