The oil price surge continued this week as global energy markets reacted to rising geopolitical tensions. Traders focused on supply disruptions linked to the Middle East conflict.
At the same time, the United States attempted to reduce market anxiety. Officials issued a temporary license allowing countries to purchase stranded Russian oil shipments.
However, the decision failed to fully calm energy markets. Investors remained concerned about long-term supply shortages and shipping risks.
Brent crude futures for May traded near $100.56 per barrel early Friday. The benchmark gained about nine percent during the week.
Meanwhile, U.S. West Texas Intermediate crude traded near $95.57 per barrel. WTI slipped slightly during the session but still moved toward a weekly gain.
Market analysts said global supply fears still dominated trading decisions. As a result, the oil price surge remained intact despite policy interventions.
The U.S. government issued a 30-day license allowing buyers to purchase Russian oil cargoes stuck at sea. Officials hoped the measure would stabilize energy markets.
U.S. Treasury Secretary Scott Bessent described the move as a short-term solution. He said the step could ease disruptions caused by the conflict involving the United States, Israel, and Iran.
Nevertheless, market experts expressed skepticism. They argued that the waiver offered only temporary relief.
Analysts explained that global oil markets still face structural supply challenges. Shipping disruptions and geopolitical tensions continue to threaten supply routes.
Energy strategist Emril Jamil from the London Stock Exchange Group highlighted those concerns. He noted that Brent crude already crossed the key $100 per barrel level.
According to Jamil, the market treated the Russian waiver as a temporary fix. Traders instead focused on deeper supply risks.
In addition, crude futures spreads suggested ongoing market tightness. These spreads reflect expectations for limited supply in the coming months.
Brent crude also gained stronger support than WTI this week. European markets depend heavily on global oil imports.
Meanwhile, the United States produces large volumes of domestic oil. That production shields the country from some external supply shocks.
Chinese market analysts also emphasized the importance of shipping routes. Yang An from Haitong Futures stressed the strategic importance of the Strait of Hormuz.
He explained that reopening the passage would ease global supply fears. Until then, traders will likely maintain a cautious stance.
The United States also announced a large emergency oil release. The U.S. Department of Energy plans to release 172 million barrels from the Strategic Petroleum Reserve.
This move aims to slow rising fuel prices and stabilize markets. Furthermore, the plan involves cooperation with the International Energy Agency.
The agency agreed to coordinate a historic global release of oil reserves. Together, member countries plan to release about 400 million barrels.
However, geopolitical tensions quickly overshadowed the announcement. Investors reacted strongly to escalating conflict in the Middle East.
Iran’s Supreme Leader, Mojtaba Khamenei, delivered a defiant message. He declared that Iran would continue the confrontation.
Furthermore, he threatened to keep the Strait of Hormuz closed. This route handles a significant share of global oil shipments.
Additional incidents also heightened market fears. Explosive boats struck two fuel tankers in Iraqi waters.
Security officials reported the attack on Thursday. Authorities later halted operations at several Iraqi oil ports.
Consequently, energy traders reacted quickly. The oil prices surge accelerated after the news reached global markets.
Energy analyst Tony Sycamore from IG said rising tensions erased earlier market optimism. Initial relief from strategic stockpile releases quickly disappeared.
As a result, both Brent and WTI crude surged sharply on Thursday. Prices reached their highest levels since August 2022.
Looking ahead, investors will monitor military developments in the Gulf region. The United States may deploy naval escorts for oil tankers.
Secretary Bessent said the U.S. Navy could cooperate with international partners. Such missions would protect ships traveling through the Strait of Hormuz.
Until stability returns, energy traders will remain cautious. Therefore, the oil price surge could continue if supply disruptions persist.
