Oil Heads for Weekly Gain as Strait of Hormuz Shutdown Persists

Oil prices were on track for another weekly gain Friday as the continued effective closure of the Strait of Hormuz and stalled diplomatic efforts to end the Iran conflict kept global energy markets under intense pressure.

Brent Crude climbed toward $107 per barrel, with futures up roughly 5% for the week, while West Texas Intermediate (WTI) traded near $102 a barrel.

Latest Oil Prices:

WTI Crude $102.5 +1.35 +1.33%

Brent Crude $107.0 +1.33 +1.26%

Murban Crude $104.7 +0.55 +0.53%

Indian Basket $109.1 +6.53 +6.37%

Natural Gas $2.928 +0.034 +1.17%

Gasoline $3.640 +0.034 +0.94%

Heating Oil $3.945 +0.039 +1.01%

WTI Midland $103.0 -0.21 -0.20%

Opec Basket $115.1 +7.43 +6.90%

The ongoing disruption has deepened fears of a prolonged supply crunch, with traders increasingly pricing in severe shortages across global crude and fuel markets.

A U.S. naval blockade targeting Iranian ports remains in place, while shipping activity across Gulf waters continues to face major security risks. A commercial vessel was reportedly seized near the entrance to the Strait of Hormuz by unauthorized individuals and escorted into Iranian waters, adding to concerns over maritime safety in one of the world’s most critical energy corridors.

On Thursday, U.S. President Donald Trump met Chinese President Xi Jinping in Beijing, where the two leaders discussed keeping Hormuz open to support global energy trade and improving flows of American oil exports to China, according to a White House official.

China’s official statement on the summit did not specifically mention energy issues, though it confirmed discussions on developments in the Middle East.

Trump later wrote on Truth Social that the “military destruction of Iran will continue,” while also expressing hope for stronger relations with China.

The war has accelerated the drawdown of global oil inventories and is expected to leave markets facing a “severe supply deficit” through October even if hostilities end next month, according to the International Energy Agency.

Fresh U.S. inflation data released this week also underscored how the conflict is feeding into rising energy costs, adding domestic political pressure on Trump ahead of November’s midterm elections.

Dennis Kissler, senior vice president of trading at BOK Financial Securities, said near-term risks continue to favor higher oil prices.

“I believe the path of least resistance for prices in the very near term still leans upward, as we continue to see tightening crude and fuel inventories,” Kissler said. “Given how far apart the current negotiations remain, further escalation appears more likely than not.”

Although a ceasefire has technically been in place since early April, repeated escalations and stalled diplomacy have prevented any meaningful breakthrough between Washington and Tehran. Trump recently described the truce as being on “massive life support” and mocked Iran’s response to his latest proposal aimed at ending the conflict.

Energy flows through Hormuz remain severely constrained. Only a limited number of tankers have exited Gulf waters since the conflict began, sharply reducing exports of crude oil, refined fuels, and liquefied natural gas to global buyers.

Meanwhile, Vitol Group has reportedly been offering Iraqi crude cargoes to buyers near Fujairah, suggesting that some shipments may have succeeded in leaving the Gulf region.

According to the U.S. Energy Information Administration, crude and fuel flows through the Strait of Hormuz declined by roughly 6 million barrels per day during the first quarter after hostilities erupted in late February, highlighting the scale of disruption facing global energy markets.