Oil Crashes 16%: Tankers Burn in Hormuz, Prices Still Fall

Tankers are still burning in Hormuz — yet oil just posted its worst week since the pandemic, down sixteen percent.

Brent closed the week at $98.32 a barrel, after briefly falling to $93. WTI settled at $90.83. The biggest drop came on Wednesday: Brent lost 8.7 percent in one session, right after the Democrats swept the US midterms.

Traders are betting the Iran war is nearing its end: President Trump said no immediate strike on Iran is planned, and Tehran sent a nuclear proposal through mediators. But tanker attacks in Hormuz remain near record levels — that is the floor under prices, and on Friday Brent bounced back toward $100.

Two opposite scenarios now loom: renewed fighting could push Brent above $110, while a deal would drain the remaining war premium.

We analyze warfare to cherish peace. Will oil take its cue from the guns in Hormuz — or from the negotiating table?