Oil prices were set to end the week on a mixed note, as escalating tensions between the US and Iran and severe disruptions in the Strait of Hormuz supported the market, while diplomatic efforts capped further gains.
International benchmark Brent crude traded at $104.94 per barrel at 14.41 local time (1141 GMT), up 9.9% from last Friday’s close of $95.48.
US benchmark West Texas Intermediate increased 8.4% to $97.12 per barrel, compared with $89.61 a week earlier.
- Tensions, disruptions drive early gains
At the start of the week, prices surged after Washington seized an Iranian-flagged vessel and Tehran responded by reclosing the Strait of Hormuz, a key transit route for around 20% of global oil supply.
The developments heightened concerns over supply disruptions, while threats of retaliation, reported drone activity targeting US-linked vessels and uncertainty over a Pakistan-brokered ceasefire added to the geopolitical risk premium.
Persistent operational disruptions in the strait continued to underpin prices, with reports that dozens of vessels were turned back due to a US naval blockade, signaling prolonged supply constraints.
Expanding US naval operations, including tanker seizures and enforcement actions targeting what Washington described as illicit networks, further reinforced expectations of tighter global supply.
- Diplomacy caps further upside
Midweek, prices eased briefly as signals of a ceasefire extension and renewed diplomatic engagement provided limited relief.
However, the decline proved short-lived as Iran’s hardline rhetoric, claims that the US blockade constituted an act of war, and uncertainty over participation in planned talks in Pakistan kept tensions elevated.
Shipping activity through the Strait of Hormuz remained sharply reduced, with only limited vessel movement reported over a 24-hour period, highlighting the scale of the disruption.
- Renewed escalation keeps market supported
Toward the end of the week, prices regained upward momentum as geopolitical risks resurfaced.
Reports of Iranian intervention in foreign vessels over alleged security violations, alongside broader conflict dynamics involving US and Israeli actions, pushed prices back above the $100 level.
By Friday, Brent climbed above $106 per barrel, supported by escalating military developments and deepening supply concerns.
Statements by US President Donald Trump ordering naval forces to target vessels laying mines in the strait, alongside reports of additional underwater mine deployments, underscored the risk of further escalation.
The deployment of additional US military assets and ongoing mine-clearing operations added to market volatility, while continued shipping bottlenecks reinforced expectations of sustained supply tightness.
Despite this, expectations that diplomatic efforts could still prevent a broader escalation limited the extent of price gains.
By Duygu Alhan
Anadolu Agency
energy@aa.com.tr
