Oil Markets Recover Friday Despite Posting Worst Weekly Decline Since June Amid Hormuz Crisis

Key Takeaways Brent futures rose past $96 per barrel while WTI approached $99 following Saudi confirmation that recent strikes reduced daily production capability by 600,000 barrels Despite Friday’s gains, crude remains poised for its largest weekly decline since June, dropping over 10% following Tuesday’s US-Iran ceasefire announcement Tehran once again suspended tanker passage through the Strait of Hormuz following Israeli military operations in Lebanon Planned weekend diplomatic discussions in Islamabad between US and Iranian officials face uncertainty as Iran denies delegation arrival Major Asian economies including Japan, China, and India are releasing strategic petroleum reserves to address supply constraints Crude oil markets extended gains for a consecutive session Friday, though the week overall is shaping up to be the worst performance since early summer as Middle Eastern supply disruptions continue to roil global energy markets. Brent futures pushed above the $96 per barrel threshold while West Texas Intermediate approached $99 during Asian trading hours. Both benchmarks registered approximately 1% increases Friday. Brent Crude Oil Last Day Financ (BZ=F) Yet despite Friday’s modest recovery, Brent crude remains down more than 11% across the trading week. WTI has experienced comparable losses. The dramatic weekly selloff followed Tuesday’s announcement of a ceasefire agreement between Washington and Tehran. Markets initially responded with optimism that regional oil shipments might normalize. However, complications emerged almost immediately. Shortly after the truce was announced, Israeli forces conducted aerial operations against targets in Lebanon, with officials stating their ongoing Hezbollah conflict fell outside the ceasefire parameters. Tehran retaliated by once again blocking commercial tanker movement through the Strait of Hormuz, characterizing Israel’s Lebanese operations as ceasefire violations. The critical waterway has been effectively clo...