Oil prices surged on Friday, settling at their highest levels in nearly four years, as Iraq declared force majeure on all oilfields operated by foreign companies and geopolitical tensions escalated, with the U.S. preparing to deploy additional Marines and naval forces to the Middle East.
Brent crude for May delivery settled at $112.19 per barrel, up $3.54 or 3.26%, marking its highest close since July 2022. U.S. West Texas Intermediate (WTI) crude for April delivery, which expired Friday, settled at $98.32 per barrel, up $2.18 or 2.27%. The more actively traded second-month WTI contract settled at $98.23, gaining 2.8%. During the session, Brent rose more than $4 at its peak.
For the week, Brent advanced approximately 8.8%, while front-month WTI declined about 0.4% compared to the prior Friday’s close. Earlier in the week, WTI’s discount to Brent widened to its largest level in 11 years.
Market sentiment continues to reflect expectations of prolonged supply disruptions following sustained attacks on key energy infrastructure across the Middle East. The outlook for a near-term reopening of the Strait of Hormuz has diminished, with analysts increasingly pricing in extended outages and tighter global supply conditions. Damage to production facilities is expected to delay any meaningful recovery in output.
Escalating conflict between Israel and Iran, along with strikes impacting regional producers including Saudi Arabia, Qatar, and Kuwait, has intensified concerns over supply security. The potential for restricted flows through the Strait of Hormuz—through which roughly 20% of global oil and LNG shipments pass—remains a central driver of bullish price momentum.
U.S. officials indicated that removing sanctions on Iranian oil cargoes could return some supply to the market within days, while additional releases from the Strategic Petroleum Reserve are expected over the coming months. At the same time, policy options under consideration to pressure Iran could further disrupt exports, adding to market uncertainty.