Despite a decline on Friday, oil prices saw significant weekly gains as military tensions between the United States and Iran stoked fears about global energy supplies and the stability of shipping through the strategic Strait of Hormuz. Brent crude finished the week at $76.01 per barrel, while the US benchmark, West Texas Intermediate (WTI), closed at $71.41 per barrel. Over the week, Brent recorded an increase of more than 5%, and WTI rose nearly 4%, largely driven by concerns over potential supply disruptions.

Throughout the week, crude prices experienced notable volatility, influenced by the escalating military exchanges between the US and Iran. This conflict has heightened uncertainty surrounding the security of the Strait of Hormuz, a crucial oil transit route globally. Despite the tensions, market sentiment received a slight boost from reports suggesting that the US is still open to diplomatic negotiations with Iran, even as the military standoff continues.

Adding to the pressure on global oil supply, Washington’s decision to revoke a waiver that previously permitted limited Iranian oil exports has intensified concerns. The situation has led to a noticeable slowdown in shipping activity through the Strait of Hormuz, with fewer large oil tankers navigating the waterway. Iran has warned of potential further restrictions on commercial traffic if military operations persist, while the US has vowed to ensure freedom of navigation in the region.

As the conflict in the Middle East unfolds, analysts predict that oil prices will remain volatile. Investors are closely watching developments and any potential progress toward resolving the conflict. The situation remains precarious, with the future of oil supplies and commercial shipping in the region hinging on diplomatic and military maneuvers in the coming days.