FX.co ★ Oil Heads for Second Straight Weekly Gain

WTI crude futures traded above $105 per barrel on Friday and were on track for a second consecutive weekly gain, as prospects for a US–Iran peace agreement faded and expectations grew that the Strait of Hormuz would remain closed for the foreseeable future. President Donald Trump reiterated that the US would continue its naval blockade of Iranian ports to increase economic pressure on Tehran. At the same time, Iran’s supreme leader, Mojtaba Khamenei, further weakened hopes for a deal by vowing not to surrender the Islamic Republic’s nuclear or missile capabilities and signaling that Iran would maintain control over the strait. Analysts warned that several countries could soon face severe oil shortages, noting that the last cargoes that left the Persian Gulf have already reached their destinations. US crude exports climbed to record highs last week, as global buyers increasingly turned to American supplies to compensate for disrupted flows from the Middle East.