WTI Crude jumps 36% in historic weekly surge amid Middle East tensions
Gold also rose 2.3%, reflecting a rare divergence from oil markets that analysts say is being widely misinterpreted
Business Desk
The Business Desk tracks economic trends, market movements, and business developments, offering analysis of both local and global financial news.
WTI Crude Oil prices surged 36% this week to $91 per barrel, marking the second-largest weekly increase in the past 40 years, behind only the 2020 rebound following the pandemic-driven crash to $15 per barrel.
Around 20% of global oil supply passes through the Strait of Hormuz, highlighting the vulnerability of energy markets to disruptions amid rising Middle East tensions.
Gold also rose 2.3%, reflecting a rare divergence from oil markets that analysts say is being widely misinterpreted.
Market consensus attributes the split to dollar strength driven by oil-linked inflation, which increases global demand for dollars. Higher energy costs push up inflation, delaying potential Federal Reserve rate cuts. Meanwhile, gold benefits from a “war premium” but is weighed down by rate repricing, resulting in modest gains even as oil prices soar.
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