Brent Crude Jumps 3% as Iran's Strait Offer Fails to Ease Supply Fears

Brent crude traded at $111.49 per barrel, marking a 13% weekly gain as traders weighed the geopolitical proposal against persistent risks. Vessel traffic through the strategic waterway fell to 8 ships on Sunday, a sharp decline from 19 the prior day, underscoring the ongoing disruption.

The price surge demonstrates that the offer did not alleviate concerns over the supply gap. Analysts point to a production shortfall of 14.5 million barrels per day resulting from the blockade. With the backlog of oil and damage to infrastructure yet to be resolved, market volatility is expected to persist.