WTI Surges to $85.90 as Strait of Hormuz Disruptions Fuel Massive Weekly Gains

WTI crude oil prices experienced a significant breakout, surging to approximately $85.90 per barrel, marking a gain of over $4.80. This rally was mirrored by Brent crude, which traded above the $88 mark, while the Middle Eastern benchmark Murban crude approached the psychological $100 level, reaching $99.60. The sharp upward movement puts oil on track for its largest weekly gain in years, driven primarily by escalating threats to tanker traffic through the critical Strait of Hormuz. These disruptions have intensified fears of a major supply shock, overriding previous concerns about global economic slowdowns. Investors are now pricing in a substantial risk premium as the geopolitical situation in the Middle East remains highly volatile. Consequently, the market outlook has shifted to a strongly bullish stance as supply security takes center stage.