Global energy markets are reeling as oil tracks toward its most significant weekly gain in four years, fuelled by escalating conflict in the Middle East.
Brent crude has rallied 16% this week as producers and shippers struggle to navigate a wave of regional disruption.
Although prices retreated toward $84 a barrel on March 6—following signals from US President Donald Trump of "imminent action" to curb costs and a loosening of Treasury restrictions on Indian purchases of Russian supply—West Texas Intermediate remains elevated near US$80.
The geopolitical landscape remains volatile; Iranian Foreign Minister Abbas Araghchi told NBC News that Tehran is prepared for a potential US ground invasion, while Israel has launched a fresh wave of strikes against Iranian targets.
Concurrently, Saudi Arabia and Qatar reported intercepting drone and missile attacks, further heightening supply fears.
Goldman Sachs warned that a total closure of the Strait of Hormuz—a transit point for 20% of global flows—could send prices spiralling, despite maintaining a base-case forecast of $76 a barrel for the second quarter.
The strain is being felt acutely across Asia as Chinese authorities have ordered major refiners to suspend diesel and gasoline exports to protect domestic stockpiles.