06.03.202607:36:14UTC+00Oil Soars in Strongest Weekly Rally Since 2022

WTI crude oil futures pared earlier losses to trade near $81 per barrel on Friday, remaining on track for their largest weekly advance since early 2022. Prices had fallen as much as 3% after US officials signaled possible near-term steps to rein in soaring energy costs, including potential releases from strategic reserves, relaxed fuel-blending rules, and authorization for the Treasury to trade oil futures.

Despite the pullback, crude is still up roughly 20% for the week, as the escalating conflict in the Middle East has severely roiled energy markets and brought shipping through the Strait of Hormuz close to a standstill. There were no signs of de-escalation: Iran denied reports that it had requested a ceasefire and indicated no willingness to enter negotiations. Tehran also launched missiles and drones across the Gulf, hitting an oil refinery in Bahrain, while Israel continued airstrikes on Iranian targets and the United States suspended operations at its embassy in Kuwait.