Brent crude falls more than 13% for the week as supply uncertainty persists

Oil markets, which are closely watched for their impact on costs in the energy and transport sectors, saw Brent crude lose more than 13% over the week. West Texas Intermediate (WTI), the US crude benchmark, fell by 12.7%. However, uncertainty over the course of the war in Iran and oil shipments continued to put upward pressure on prices.

There was a limited recovery on Friday. Brent crude closed up 0.03% at $98.32 a barrel, while WTI rose 0.34% to $90.83. Brent’s weekly percentage decline was its steepest since the start of the Covid pandemic.

Sharp sell-off after election results

The weekly decline came after Republicans suffered heavy losses in the US midterm elections. Democrats gained control of both the House of Representatives and the Senate. US Vice-President JD Vance linked the election defeat to the war in Iran.

On Wednesday, Brent fell 8.7% to $94.62, while WTI dropped 8.3% to $88.12. Both benchmarks thus recorded their lowest closes since 31 August. Gains on Thursday and Friday were not enough to offset the losses for the week.

Risks along shipping routes persist

After meeting with national security advisers, US President Donald Trump said he would decide soon whether to resume attacks on Iran or continue seeking an agreement.

Disruptions to shipping through the Strait of Hormuz are also keeping supply concerns alive. Tehran said on Thursday that three more vessels had been hit in the strait. Houthi attacks on Saudi tankers in the Bab el-Mandeb Strait are among the other risks being watched by the market.

Oil prices have been volatile since the conflict began at the end of February. Brent futures briefly climbed above $126 at the end of April, before falling during talks aimed at ending the crisis.