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.