Crude benchmarks jump over 8% weekly amid Strait of Hormuz closure, raising concerns over global oil supply disruptions.
Crude oil prices climbed sharply, with light sweet crude settling at $105.42 a barrel, up 4% on the day and 10.5% for the week. Brent crude closed at $109.26, gaining $3.54 on Friday and 8% over the week.
The rally followed escalating geopolitical tensions after the Strait of Hormuz, a critical chokepoint for 20% of global oil flows, remained closed. Diplomatic efforts failed to secure China’s support for reopening the strait, heightening supply risks.
Gasoline prices, which had eased earlier in the week to $4.52 a gallon from $4.54, may face upward pressure as crude costs rise. Markets now weigh the potential for prolonged supply constraints against demand concerns.