Oil Prices Surge on Ongoing Hormuz Tensions

Oil prices are set for a weekly gain of around 4% as tensions between the US and Iran continue to simmer, keeping supply risks elevated. At press time, Brent crude was trading at $87.84 per barrel, while West Texas Intermediate stood at $82.45 per barrel.

The gains have been supported by tanker traffic through the Strait of Hormuz remaining at a fraction of pre-war levels. The US has threatened to maintain its naval blockade of Iran indefinitely and increase economic pressure on Tehran.

Susan Bell, senior vice president for oil at Rystad Energy, said that despite bearish crude stock data, 'the broader geopolitical backdrop is preventing a sharper price decline.'