WTI crude futures traded above $101 per barrel on Friday and were poised to gain about 7% for the week, as diplomatic efforts to resolve the US-Iran conflict remained deadlocked, effectively keeping the strategically vital Strait of Hormuz closed. The key shipping lane remains subject to a dual blockade that has become a central sticking point in negotiations, with President Donald Trump warning that the current ceasefire was on “massive life support” after rejecting Tehran’s latest response to his peace initiative.
At the same time, the IEA reported that crude and fuel shipments through the Strait of Hormuz fell by roughly 4 million barrels per day in March and April, cautioning that the global oil market could remain significantly undersupplied through October even if the conflict is resolved next month. Separately, President Trump met with Chinese President Xi Jinping, with both leaders discussing measures to keep the strait open to protect energy trade and to bolster US oil exports to China.
