September WTI crude oil registered its strongest weekly performance in recent months, according to OilPrice, as market participants rapidly priced in renewed geopolitical risk. The benchmark opened the trading week near $72.50 per barrel before climbing above $80, marking a dramatic reversal from the prior two weeks when optimism surrounding improved oil flows through the Strait of Hormuz had weighed on prices.
The sharp turnaround reflects a shift in trader focus back toward supply vulnerabilities stemming from escalating military activity between the United States and Iran. This geopolitical risk premium, previously absent from the market, has now resurfaced as a meaningful factor in crude valuations, reversing the demand-side sentiment that had dominated recent trading sessions.
The 11% weekly rally underscores the market's sensitivity to Middle East tensions and the critical importance of the Strait of Hormuz as a global oil transit route. Traders remain attuned to further developments in U.S.-Iran relations, with any escalation likely to amplify supply concerns and further support crude prices.