2026.05.1512:53:30UTC+00Oil Heads for Strong Weekly Gain

WTI crude oil futures rose more than 3% on Friday to trade above $104 per barrel and were heading for a weekly gain of over 9%, as the effective closure of the Strait of Hormuz kept global supply risks elevated. Diplomatic efforts to resolve the conflict remain stalled, and ongoing disruptions are continuing to roil energy markets and stoke inflation concerns.

President Donald Trump has issued mixed signals on the situation. He initially suggested that the US did not need the Strait to remain open, but later, speaking alongside Chinese President Xi Jinping, stated that “we want the straits open.”

The International Energy Agency warned this week that the oil market could remain sharply undersupplied until October, even if hostilities end next month. Oil inventories are continuing to tighten, while tanker traffic through the Strait of Hormuz remains extremely limited, with only a small number of vessels having managed to exit the Persian Gulf since the conflict began.