Oil posted historic weekly gains as prolonged Hormuz blockade triggers unprecedented scramble for US crude
Over five days, WTI soared 35.6% and Brent 27%, underscoring a widening structural divergence between the two benchmarks.
Global energy markets spiked sharply on Friday as escalating US–Israel–Iran tensions triggered a week-long blockade of the Strait of Hormuz.
Brent closed at $92.69/barrel, up $7.28 or 8.5%, while US WTI jumped $9.89, rising 12.2% to $90.90/barrel — marking the steepest weekly gains since Spring 2020. Over five days, WTI soared 35.6% and Brent 27%, underscoring a widening structural divergence between the two benchmarks.
The seven-day closure has trapped roughly 140 million barrels, forcing refiners to scramble for alternative supplies. US crude benefitted from immediate availability, attractive domestic refining margins, and high-arbitrage potential into Europe, amplifying price moves. Heightened geopolitical risk further eroded bearish sentiment, with institutional forecasts rapidly eyeing the $100/barrel level.
Warnings from Qatar’s energy minister that Gulf exports could halt entirely within weeks stoked panic, suggesting a potential upside to $150/barrel in a worst-case scenario. US policy signals reinforced the risk-on mood, with the administration prioritising military objectives over domestic fuel costs.
Emergency measures, including US Treasury sanctions waivers for Russian crude, and Indian refiners locking in cargoes, provided only partial relief. Traders now navigate extreme volatility, balancing temporary supply mitigation against ongoing losses from Gulf exports.
Written by: Aiman Haikal