Oil: Prices bounce but weekly losses deepen on Hormuz tensions – UOB

FXStreet Insights Team FXStreet

UOB Global Economics & Markets Research highlights that WTI and Brent futures rebounded modestly on Friday but still logged their largest weekly declines since April 2026. The bank links recent strength in Brent and the US Dollar on Monday morning to renewed US–Iran clashes in the Strait of Hormuz, which threaten ceasefire prospects and keep supply-risk premia in focus.

Crude recovers after sharp weekly drop

"Looking ahead, markets are likely to continue to face uncertainty over US-Iran peace negotiations following Thu's military exchanges near the Strait of Hormuz, and the latest rejection of Iran’s response to end the conflict as “totally unacceptable” by US President Trump."

"This sent Brent crude oil price higher and US dollar stronger on Mon (11 May) morning."

"Oil prices edged higher on the day but posted weekly declines while gold prices rose."

"WTI crude for Jun delivery settled at USD95.4/bbl, up 61 cents or 0.6% last Fri, but down USD6.5 or 6.4% for the whole of last week—the largest one-week decline since the week ending 17 April 2026."

"Brent crude for Jul delivery settled at USD101.3/bbl, up USD1.23 or 1.23% on Fri, but down USD6.9 or 6.4% for the week—the largest one-week decline since the week ending 10 Apr 2026."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

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Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.