Global crude oil benchmarks are on track to lock in a third consecutive week of significant gains as relentless military friction in the Middle East heightens fears over prolonged supply disruptions. Despite experiencing a modest Friday retreat, Brent crude hovered near $97 a barrel, posting a weekly surge of over 9% after briefly touching $100 earlier in the session. Market anxiety remains elevated following continued U.S. military strikes against Iranian infrastructure aimed at protecting commercial shipping lanes in the Strait of Hormuz—a crucial maritime conduit for global oil supplies that has experienced severe transport bottlenecks. Geopolitical risks further broadened into the Red Sea after reports of attacks on energy vessels near the Bab el-Mandeb Strait, sparking concern over potential multi-front disruptions to global shipping. Although tentative diplomatic proposals have been floated, ongoing exchanges between Washington and Tehran continue to keep a substantial geopolitical risk premium embedded in crude markets. Analysts note that while intraday price fluctuations reflect cautious profit-taking, the persistent threat to key energy export corridors continues to underpin oil prices, leaving energy markets vulnerable to further upward pressure should regional hostilities escalate further.
Crude Prices Heading for Sharp Weekly Surge as Escalating Middle East Tensions Threaten Vital Oil Transit Routes
