Oil Prices Head for 4% Weekly Gain as U.S.-Iran Deadlock Drags On

AI Summary

Crude oil prices are projected to increase by about 4% this week amid ongoing tensions between the United States and Iran. The low tanker traffic through the Strait of Hormuz and threats of continued U.S. naval blockade contribute to higher Brent and West Texas Intermediate prices.

Crude oil prices were on course to add 4% this week, as the United States and Iran indicated they are no closer to a peace deal than they were at the start of the war. At the time of writing, Brent crude was trading at $87.12 per barrel, and West Texas Intermediate was trading at $81.36 per barrel. The rise of both benchmarks was driven by low tanker traffic through the Strait of Hormuz, which remains at a fraction of pre-war levels, and the United States' threat to keep its naval blockade of Iran in place “indefinitely” and exert…