Crude oil prices are projected to gain approximately 14% this week following renewed military strikes between the U.S. and Iran [1, 8].
The surge reflects growing anxiety over the stability of critical shipping lanes. Because the Strait of Hormuz and Red Sea are vital for global energy transit, military escalation in these regions often triggers immediate price volatility and supply-chain disruptions.
Brent futures jumped seven percent on Thursday to trade above $100 per barrel [5]. While the price later settled at $99.97 per barrel, a dip of 0.72%, the overall weekly trend remains upward [1]. Projections for the weekly advance of Brent crude range between 13.5% [2] and around 14% [8].
West Texas Intermediate (WTI) futures followed a similar trajectory. WTI saw a 6.2% increase on Thursday [6] and is projected to end the week with a 10.9% rise [4]. The current price for WTI stands at $91.49 per barrel, down 0.76% from its recent peak [3], though other reports place it near $92 per barrel [9].
Reuters said oil prices rose about two percent to reach a one-month high as the U.S. and Iran stepped up attacks in the Strait of Hormuz [10]. This volatility is compounded by broader economic pressures, including heightened inflation concerns that are pushing expectations for higher interest rates [1].
Unlike energy commodities, precious metals have seen a modest decline. Spot gold prices fell 0.1% to $4,042.77 per ounce [7], and silver prices also decreased during the same period [1].
“Crude oil prices are projected to gain approximately 14% this week”
The simultaneous rise in energy costs and the dip in precious metals suggest that market participants are prioritizing immediate supply-shock risks over long-term safe-haven hedging. If military tensions in the Strait of Hormuz persist, the resulting 'energy tax' on the global economy could fuel the very inflation and interest rate hikes that investors currently fear, potentially creating a feedback loop of economic instability.
