Oil Prices Post Weekly Gains on Hopes of an End to the Middle East War

Oil Prices secured strong weekly gains

Oil Prices

Oil prices secured strong weekly gains despite a sharp pullback in Friday's session, as reports suggested that Pakistan and China are working to revive diplomatic talks between the United States and Iran.

By the close of trading on Friday, July 24, 2026, global crude prices had retreated from recent highs, although both major benchmarks still posted robust weekly advances. Brent crude gained more than 7% over the week, while U.S. West Texas Intermediate "WTI" futures also climbed approximately 7%.

At settlement, Brent crude futures fell $3.91, or 4%, to close at $96.78 per barrel. Meanwhile, WTI crude futures declined $2.88, or 3.12%, to settle at $89.31 per barrel.

Pakistan and China Push for Renewed U.S.-Iran Dialogue

Pakistan's Foreign Minister discussed the diplomatic initiative with Chinese officials last week, according to a Pakistani government official, who said:

"The Chinese are frustrated because Iranian attacks on other Gulf countries and the closure of the Strait of Hormuz are damaging their interests."

The reports raised expectations that renewed diplomatic efforts could help ease regional tensions and reduce risks to global energy supplies.

Energy Markets Remain Highly Volatile

Global energy markets remained highly volatile throughout the week, with overall inventories still exceptionally tight. Market participants warned that supply conditions could shift rapidly, underscoring the importance of closely monitoring geopolitical developments.

Earlier this week, U.S. President Donald Trump threatened Iran and its Houthi allies with severe military retaliation following attacks targeting two Saudi oil tankers in the Red Sea. The incidents intensified concerns over a potential disruption of traffic through the Bab el-Mandeb Strait, which connects the Red Sea to the Indian Ocean and is the world's second-most important oil shipping chokepoint after the Strait of Hormuz.

Kazakhstan Cuts Oil Output After Export Terminal Disruption

Separately, Kazakhstan's Ministry of Energy announced on Thursday that oil producers had temporarily reduced output after suspected Ukrainian attacks forced the country's main Black Sea export terminal to suspend operations.

The export route handles roughly 2% of global daily crude oil supplies. While the ministry did not disclose the scale of the production cuts, a source familiar with the matter said the country's largest oil field had reduced production by more than half.