Global Economy
WTI Crude Soars 11% in a Week as Hormuz Strait Remains Blocked
Crude oil prices kept climbing on Saturday, with the U.S. West Texas Intermediate benchmark rising over 4.5% in a single day to around $106 per barrel – a weekly gain of almost 11%. The surge is being fueled by the de‑facto closure of the Strait of Hormuz, which has choked off most maritime traffic and revived fears of a global supply shortfall. Adding to the market volatility are conflicting statements from President Donald Trump and a stark warning from the International Energy Agency that oil supplies could stay significantly undersupplied until October, even if fighting eases soon.
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Crude oil prices continued their surge on Saturday, May 16, 2026. The U.S. West Texas Intermediate (WTI) benchmark rose more than 4.5 % on Friday, bringing the barrel price to roughly $106 and pushing its weekly gain to almost 11 %.
The rally is being driven by the ongoing closure of the Strait of Hormuz, which has effectively halted most maritime traffic between the Persian Gulf and the rest of the world. The limited number of vessels that have managed to exit the Gulf since the conflict began has amplified worries about global supply.
Political backdrop
Efforts to de‑escalate the Middle‑East fighting have stalled. President Donald Trump has issued contradictory remarks – first claiming the United States does not need the strait reopened, then later saying, alongside Chinese President Xi Jinping, that “the straits must stay open”.
IAE warning
The International Energy Agency (IEA) warned that oil markets could stay “significantly undersupplied” through October, even if hostilities end next month. This outlook is reinforcing the price surge.
Supply squeeze
Crude inventories are shrinking while the flow of tankers through Hormuz remains minimal. Only a handful of ships have cleared the chokepoint since the hostilities erupted.
Related coverage
- May 15 – Emirates accelerate new oil‑pipeline construction.
- May 13 – OPEC cuts its 2026 global oil‑demand growth forecast.
- May 11 – Middle‑East oil rally, global markets tread cautiously.