Brent crude oil futures rose above $85 per barrel on Friday and were headed for their largest weekly gain since 2022, as the intensifying conflict in the Middle East sharply disrupted global energy flows. The turmoil has almost brought shipping through the Strait of Hormuz to a standstill. This key chokepoint typically handles around 20 million barrels of oil and petroleum products per day.
Commercial traffic through the strait has largely halted amid mounting security concerns, higher insurance costs, and growing operational uncertainty. In response, some producers have begun shutting in production, further tightening already strained markets.
Geopolitical tensions remained elevated after Abbas Araghchi stated that Iran was not seeking negotiations. The United States signaled it may take steps to alleviate supply pressures, including a possible release of crude from its strategic reserves, and temporarily authorized India to purchase some Russian oil already in transit.
At the same time, Saudi Arabia increased its official selling prices for Asian customers and diverted shipments through Red Sea ports to avoid the Strait of Hormuz.
