Oil traders reshaped the market this week, pushing WTI to $96.91 as geopolitical risk overtook fundamentals. The move signals a structural shift in how near‑term supply risk is priced. The backdrop was a sharp escalation between the U.S. and Iran, culminating in the seizure of an Iranian‑linked vessel and threats of retaliation. The Strait of Hormuz, which carries roughly one‑fifth of global crude, became the focal point of the risk premium. By Thursday night, WTI was trading $96.91, up $14.32 (+17.34%) from the start of the week. Brent followed a similar trajectory, with both benchmarks reflecting a rapid expansion in geopolitical risk rather than a change in underlying supply and demand. Physical market data confirmed tightening: Asia’s refineries cut runs by more than 2.5 million barrels per day, especially in middle distillates such as diesel and jet fuel. Analysts noted that the speed of the move signaled urgency in positioning, with traders prioritizing exposure to potential supply shocks over traditional valuation measures. The market absorbed bearish U.S. inventory builds with limited downside follow‑through, reinforcing the idea that traditional supply and demand indicators are being shadowed by geopolitical risk. Until clear evidence of de‑escalation or restored flows emerges, the premium is unlikely to unwind in a sustained way. Traders should monitor developments in the Strait of Hormuz closely, as any shift could trigger sharp volatility in both WTI and Brent.