Weekly Crude Prices Rally as Renewed US-Iran Escalation Fuels Strait of Hormuz Supply Risks

Crude prices posted weekly gains following a mid-week escalation in tensions between the US and Iran, which triggered retaliatory military strikes and left commercial shipping traffic through the strategic Strait of Hormuz severely constrained. West Texas Intermediate settled at $71.51 per barrel, up from $68.78/bbl the previous week, while Brent closed at $75.28/bbl, up from $71.94/bbl a week earlier. WTI gained almost 4% over the week, while Brent rose nearly 6%. "Following the mutual attacks in the Gulf region and US President Trump's termination of the ceasefire, the price of Brent crude has risen by more than 10% within two days," Commerzbank analysts noted. The trading week opened quietly as markets weighed a massive $11/bbl price cut from Saudi Arabia for Asian buyers alongside OPEC+'s weekend decision to increase August production quotas by 188,000 barrels per day. Aramco set its August official selling price for Arab Light crude to Asia at a $1.50/bbl discount to the Oman/Dubai average, down from last month's $9.50 premium. However, this initial downward pressure evaporated on Tuesday when the conflict intensified. Iran attacked three commercial tankers in the.