Key Highlights

• Brent crude futures touched $87 a barrel, nearing the largest weekly gain since 2020.
• The global benchmark is up more than 19 percent since last Friday’s close of $72.87.
• An estimated 15 million barrels per day of crude and refined products are stranded due to the Strait of Hormuz closure.
• West Texas Intermediate (WTI) also climbed above $82 a barrel for the first time since mid-2024.
• Retail gasoline prices in the U.S. have jumped nearly 27 cents to $3.25 per gallon, the sharpest weekly increase since March 2022.

Crude oil prices are surging towards their largest weekly advance in nearly six years, with Brent futures reaching $87 a barrel. This significant upward movement is directly linked to the escalating military conflict between the United States, Israel, and Iran, which has severely impacted shipping through the critical Strait of Hormuz. This vital waterway accounts for roughly a fifth of the world's seaborne oil flow.

In London trading on Friday, Brent crude climbed as much as 2.1 percent to $87.12. This extends a consistent five-session rally that has propelled the global benchmark up by more than 19 percent from last Friday's closing price of $72.87. West Texas Intermediate (WTI) has mirrored this trend, surpassing $82 a barrel for the first time since mid-2024.

If these gains are sustained until the market close, it will represent the steepest weekly percentage increase for oil prices since the Saudi Arabia–Russia production war disrupted markets in the spring of 2020. The current price surge follows coordinated strikes by U.S. and Israeli forces on Iran over the weekend, which resulted in the death of Supreme Leader Ali Hosseini Khamenei.

Iran's subsequent retaliatory missile barrages across Gulf states have led to an effective shutdown of tanker traffic through the Strait of Hormuz. This has stranded an estimated 15 million barrels per day of crude and refined products at the chokepoint's narrow entrance.

Jorge Leon, head of geopolitical analysis at Rystad Energy, highlighted the immediate impact, stating, "The most immediate and tangible development affecting oil markets is the effective halt of traffic through the Strait of Hormuz." The Strait, bordered by Iran to the north, serves as the sole maritime exit for petroleum exports from major producers including Saudi Arabia, Iraq, Kuwait, the UAE, and Qatar.

The impact on crude oil markets has been substantial. WTI experienced its largest single-session gain since May 2020 on Thursday, soaring 8.51 percent to settle at $81.01 a barrel. Brent crude also saw a significant increase of nearly 5 percent the same day, closing at $85.41. Since the commencement of the strikes, U.S. oil prices have advanced by approximately 21 percent. Concurrently, retail gasoline prices at the pump in the U.S. have jumped by nearly 27 cents, reaching a national average of $3.25 per gallon, marking the sharpest weekly increase since Russia's invasion of Ukraine in March 2022, according to the motorist group AAA.

President Donald Trump indicated on Monday that the conflict could be protracted, stating that the U.S. would continue executing large-scale strikes and that hostilities might last for weeks. This assessment further unsettled energy markets, pushing Brent crude past the $82 per barrel mark for the first time since January 2025.