Oil Prices Surge Nearly 6% Amid Strait of Hormuz Attacks and Stalled US-Iran Negotiations
International oil prices surged nearly 6% this week due to fresh tanker attacks in the Strait of Hormuz and stalled negotiations between the US and Iran. Two vessels operated by Abu Dhabi National Oil Company (ADNOC) were attacked Thursday while transiting the strait, with the UAE condemning the incident as an Iranian assault.
US Treasury Secretary Scott Bessent said Washington would impose unprecedented economic pressure on Iran and could maintain a maritime blockade indefinitely. The US estimates crude flows through the Strait of Hormuz at roughly 9 million barrels per day, while private-sector estimates put the figure at only about 5 million barrels per day.
Brent crude futures settled above $88 per barrel on Friday, posting a weekly gain of roughly 6%. OPEC cut its 2026 demand growth forecast to 580,000 barrels per day, and the IEA expects consumption to fall by 1.6 million barrels per day this year.