Oil prices surged to record weekly gains amid escalating geopolitical tensions in the Middle East. US WTI crude futures jumped 35.63% for the week, the highest since 1983, closing at .90 per barrel on Friday. Brent crude also rose 27.88% weekly, reaching .69 per barrel. The rally followed US President Donald Trump's declaration that no deal with Iran would be possible without unconditional surrender, alongside disruptions in shipping through the Strait of Hormuz. The US DFC announced a billion reinsurance plan to stabilize oil tanker traffic through the strait, aiming to ease market fears. The sharp price increase highlights the sensitivity of energy markets to geopolitical risks. Traders are now closely monitoring developments in the Middle East, particularly the potential for prolonged conflict and its impact on global oil supply chains. The surge has also reignited discussions about OPEC+ production policies and whether further output cuts could support prices. Volatility is expected to remain elevated as markets weigh the balance between supply disruptions and economic growth concerns. For investors, the rally underscores the strategic importance of energy assets during geopolitical crises. Gulf and MENA investors may see both opportunities and risks, given the region's exposure to oil price fluctuations. Key watchpoints include the effectiveness of the DFC's reinsurance plan, potential military escalations in the Middle East, and OPEC+ decisions at upcoming meetings. Technical traders should monitor .90 as a critical support level for WTI and .69 for Brent crude.

Read full article from source ↗