Brent Oil Jumps 16% for Best Week Since April as US-Iran Conflict Fuels Supply Fears

Global oil prices posted their strongest weekly gains in months on Friday as the escalating conflict between the United States and Iran heightened concerns over global crude supply and shipping disruptions through the Strait of Hormuz.

Brent crude futures settled 4.6% higher at $88.13 per barrel, marking a weekly gain of 16%—the largest advance since April. U.S. West Texas Intermediate (WTI) crude climbed 4.5% to $82.47 per barrel, ending the week up 15.5%, its strongest performance since the early stages of the war in March.

Market sentiment remained focused on growing geopolitical risks after Iran reported U.S. strikes on key infrastructure, including bridges near Bandar Abbas. Meanwhile, reports indicated the Trump administration is preparing for a possible expansion of military operations. Axios said Washington has sent additional aerial refueling aircraft to Israel, while earlier reports suggested military planners were evaluating options that include securing Iranian islands near the Strait of Hormuz.

The vital shipping route, which normally handles about one-fifth of global oil and gas trade, has experienced a sharp decline in vessel traffic. Shipping intelligence firm Kpler said confirmed crossings fell to just eight on Thursday, the lowest level in three weeks, with most vessels using higher-risk Iranian waters due to increasing security concerns.

Adding to supply worries, the U.S. has resumed a naval blockade around Iranian ports. In response, Iraq and Syria announced plans to restore a crude oil pipeline that would bypass the Strait of Hormuz. The U.S. State Department welcomed the project, saying the proposed pipeline could initially transport up to 2 million barrels of crude oil per day.

Analysts remain divided on oil's next move. Trade Nation senior market analyst David Morrison noted Brent has recovered roughly half of its decline from mid-May but said technical indicators now suggest neutral momentum, leaving prices largely dependent on geopolitical developments and any renewed peace negotiations.

Fundamentals also offered support after the U.S. Energy Information Administration reported crude inventories fell by 1.7 million barrels to 409.7 million barrels last week, while gasoline stockpiles declined by 1.5 million barrels. Earlier data from the American Petroleum Institute also showed a drop in U.S. crude inventories, reinforcing expectations of a tightening oil market.