Oil Prices Surge on Supply Disruptions and Geopolitical Tensions

Oil prices have surged on supply risks, with Brent crude settling above $96 per barrel and posting a strong weekly gain. This rise is attributed to ongoing disruptions to Middle East supply routes and renewed geopolitical tensions that continue to support energy markets.

Brent and WTI futures have advanced further, with weekly gains approaching 8% and 10% respectively. The Strait of Hormuz remains a key area of concern, as any signs of disruption to energy supplies could influence risk sentiment and oil prices.

Oil prices have gained more than 7% for the week following resumed military exchanges between the US and Iran in their ongoing conflict. This has contributed to higher energy prices, with US diesel hitting a record high.