September WTI crude oil futures were trading at $84.12 late Thursday, down $6.35, or 7.02%, for the week.
With Friday’s session still ahead, the weekly result is not final.
But the week’s main story is clear: crude sold off hard when traders thought diplomacy could restore a workable route through the Strait of Hormuz, then rebuilt part of that risk premium when the military exchange returned.
The week opened with Washington’s pause in strikes and Oman’s proposal for regional management of Hormuz. That gave traders something concrete to sell.
If the route could reopen under an arrangement accepted by Tehran and the Gulf states, the supply disruption would become a temporary shock rather than a lasting constraint. WTI came under heavy pressure as that possibility gained traction.
That trade broke down quickly. Iran rejected the Oman plan and launched missiles at U.S. forces. The United States and Saudi Arabia struck Iran-backed groups in Iraq, and U.S. Central Command followed with attacks on Revolutionary Guard targets inside Iran early Thursday.
The reversal showed that the earlier selling was built on diplomatic hope, not a restoration of crude flows. The risk premium returned, but it has not recovered all the ground lost earlier in the week.
That is why WTI remains sharply lower week to date even after the war moved back to the center of the trade.
