Oil Surges 12% Weekly on Strait of Hormuz, Red Sea Closure Risks
Brent crude and WTI both posted substantial weekly gains of approximately 12% amid geopolitical concerns over potential shipping disruptions in critical waterways. Brent futures climbed to $85.28 per barrel while WTI reached $79.98, extending consecutive weeks of advance.
Crude oil benchmarks posted significant gains on July 17, according to market reports. Brent crude futures advanced $1.05, or approximately 1.25%, to settle at $85.28 a barrel, while U.S. West Texas Intermediate (WTI) crude futures rose $1.03, or 1.3%, to $79.98 a barrel. These intraday moves helped both benchmarks recover losses from the previous trading session. Over the broader weekly period, both oil contracts rallied nearly 12%, with Brent crude headed for a third consecutive week of gains and WTI on course for its second straight week of advances.
The rally reflects broader market concerns regarding potential supply disruptions linked to geopolitical tensions. Reports indicated that risks associated with the Strait of Hormuz and Red Sea closure scenarios are weighing on trader sentiment, pushing investors toward crude futures as a hedge against potential supply constraints. The Strait of Hormuz represents one of the world's most critical chokepoints for oil transit, making any closure scenario a significant supply shock concern. Market participants typically reassess crude valuations when transportation risks emerge, as such disruptions could materially alter global crude availability and pricing dynamics. The consecutive weekly gains across both Brent and WTI suggest sustained concern among market participants rather than isolated volatility, indicating that geopolitical risk premiums remain embedded in current price levels.
Source: Markets-Economic Times
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