From Sunday through late Thursday, oil swung sharply as traders moved between two competing forces: escalating war risk in the Middle East and a growing policy response aimed at easing supply shortages.
As of late Thursday, nearby WTI crude oil traded at $94.13, down $3.90 or 3.98%, reflecting how quickly sentiment shifted during the week.
War Risk Collides With Supply Relief, Driving Violent Oil Price Swings
Early in the week, crude prices moved lower as initial fears of a complete supply choke eased. Reports indicated that some tankers had begun moving through the Strait of Hormuz, reducing the immediate panic over a full shutdown.
At the same time, traders weighed strong U.S. production levels and the possibility of additional Strategic Petroleum Reserve (SPR) releases.
This combination pushed Brent and WTI lower on Monday, as the market briefly leaned toward the idea that supply disruptions could be managed.
Strait of Hormuz Disruptions Keep One-Fifth of Global Oil Trade on Edge
That calm quickly faded as the market refocused on the importance of the Strait of Hormuz, which handles roughly 20% of global oil and liquefied natural gas flows.
Even partial disruptions created major uncertainty. Shipping delays, rising insurance costs, and limited tanker movement kept supply concerns elevated.
While some vessels were getting through, the flow was far from normal, leaving traders highly sensitive to any new developments tied to the waterway.
