2026.04.0923:36:26UTC+00Oil Set for Sharp Weekly Drop

WTI crude futures rose above $98 per barrel on Friday as Israeli strikes in Lebanon and the continued closure of the Strait of Hormuz heightened tensions and complicated diplomatic efforts. Still, prices remained on track for a weekly decline of more than 10% after the US and Iran agreed to a two-week ceasefire. Israeli Prime Minister Benjamin Netanyahu insisted that operations in Lebanon fall outside the scope of the US-Iran truce, even as Washington scheduled talks next week with Israel and Lebanon aimed at broader ceasefire arrangements. Meanwhile, US President Donald Trump warned Iran over its decision to impose transit fees in the Strait of Hormuz, criticizing Tehran’s handling of oil shipments. The vital shipping lane remains largely shut as shipowners await clearer guidance on access. Elsewhere, Saudi Arabia reported that its oil production capacity has been curtailed by about 600,000 barrels per day following attacks on energy infrastructure, while a key pipeline intended to bypass the Strait of Hormuz was also hit.