Oil Surges 9% on US-Iran Attacks, Hormuz Reopening Prospects Fade

Oil futures posted a weekly gain of over 9% as US and Iranian forces exchanged attacks for the first time in about a month, undermining expectations of a near-term agreement to end the conflict and reopen the Strait of Hormuz. Brent crude settled at $96.28, up 0.80% on the day, with trading volumes thin due to the US Labor Day holiday. The escalation raises supply risk premiums, with the market now pricing a prolonged disruption to a key chokepoint.