Oil Prices Surge 13% on US-Iran Tensions, Strait of Hormuz Closure

Oil prices have surged 13% over the past week, the largest weekly gain in months. West Texas Intermediate (WTI) is at approximately $80.45 per barrel, while Brent crude is at $84.14.

The spike follows a US blockade of Iranian ports and Iran's closure of the Strait of Hormuz. This critical shipping chokepoint handles about 20% of the world's oil traffic.

Markets are pricing these disruptions as consistent with scenarios where oil could potentially exceed $100 per barrel. Analysts see a significant risk of further supply shocks if tensions persist.

The situation has put officials from OPEC and the International Energy Agency (IEA) in the spotlight. Traders are watching for any statements that could shift market expectations.

The key variable remains the stability of global supply chains through the Persian Gulf.