Global crude benchmarks stabilized Friday, with Brent crude holding at $87.03 per barrel and U.S. West Texas Intermediate hovering at $81.29, positioning both contracts for a 4% weekly gain that breaks a two-week losing streak.
The price recovery followed Washington’s threat to maintain an indefinite naval blockade on Iran and escalate economic sanctions after diplomatic ceasefire negotiations stalled.
The escalating geopolitical confrontation has severely disrupted maritime traffic through the Strait of Hormuz—a transit bottleneck for 20% of world oil consumption—re-injecting a risk premium into global energy markets.
However, price rallies remain constrained as traders weigh Middle East supply risks against weakening fundamentals. Both OPEC and the International Energy Agency recently lowered their global demand growth forecasts.
Adding further downside pressure, U.S. Energy Information Administration data revealed a 17.4 million barrel domestic crude stock build—the largest weekly accumulation in three and a half years.
