Oil Set for Strong Weekly Surge

WTI crude futures climbed toward $97 per barrel on Friday, on track to gain more than 17% for the week as stalled US-Iran peace negotiations and the continued closure of the Strait of Hormuz fueled supply concerns. Reports indicated that President Donald Trump’s Truth Social posts, along with his decision to maintain a naval blockade of Iranian ports, have complicated prospects for renewed negotiations with Tehran. In a post on Thursday, Trump said he had ordered the US Navy to “shoot and kill” vessels laying mines in the strait, while US forces also boarded a supertanker carrying Iranian oil in the Indian Ocean.

Meanwhile, the US-Iran ceasefire has been extended indefinitely as Washington awaits a new formal proposal from Tehran, while the truce between Israel and Lebanon has also been prolonged by three weeks. The ongoing disruption has led to a sharp decline in shipments from major Middle Eastern oil and gas producers, substantially tightening global supply.