ASX 200 energy shares outperformed last week, rising 1.96%, while a painful 8-day slide for the broader market finally ended on Friday.
The S&P/ASX 200 Index (ASX: XJO) rose 0.74% on Friday to finish the week at 8,729.8 points.
This equated to a weekly fall of 0.65%.
The market was pessimistic last week as negotiations between the US and Iran stalled and oil prices surged again.
Only three of the 11 market sectors finished the week in the green.
Let's review.
Image source: Getty Images
Global fuel shock drags on with no end in sight
Energy prices lifted again last week as the market anticipated continuing supply disruption as the war in Iran continued.
On Friday, Brent Crude was trading at US$111.85 per barrel, up 6% over the week.
West Texas Intermediate Crude was US$106.40 per barrel, up 12.3% for the week.
Also last week, US heating oil rose 5.6%, US gas prices lifted 5.5%, and European gas prices increased 4.3%.
The Strait of Hormuz, through which about 20% of the world's gas and oil supply is shipped, remains effectively shut down.
On Friday, Trading Economics analysts painted a grim picture as the US and Iran both dug in their heels:
President Donald Trump reaffirmed that the US would maintain its naval blockade of Iranian ports to intensify economic pressure.
Iran's supreme leader Mojtaba Khamenei also dampened prospects for a deal, pledging not to relinquish the Islamic Republic's nuclear or missile capabilities and indicating that Tehran would retain control over the strait.
Economists have been warning that oil supply shocks have a long-tail impact that is yet to fully play out in Western economies.
The analysts added:
… several countries could soon face acute oil shortages, as the final shipments that departed the Persian Gulf have already arrived at their destinations.
US crude exports surged to record levels last week, with global buyers increasingly turning to American producers to offset disrupted Middle Eastern supply.
What happened with ASX 200 energy shares last week?
The Woodside Energy Group Ltd (ASX: WDS) share price rose 1.56% to close at $33.12 on Friday.
The Santos Ltd (ASX: STO) share price lifted 2.95% to $8.02.
The Ampol Ltd (ASX: ALD) share price ascended 4.74% to $35.82, after reaching a 52-week high of $36.04 on Friday.
The Viva Energy Group Ltd (ASX: VEA) share price rose 4.17% to $2.50.
Karoon Energy Ltd (ASX: KAR) shares fell 3.13% to close the week at $2.17.
Beach Energy Ltd (ASX: BPT) shares dropped 4.1% to $1.17 apiece.
ASX 200 coal shares also rose last week alongside a 3.8% lift in the thermal coal price.
The thermal coal price was US$134 per tonne on Friday, up almost 9% since the war began.
The Yancoal Australia Ltd (ASX: YAL) share price bounced 6.96% to close at $7.68 on Friday.
The Whitehaven Coal Ltd (ASX: WHC) share price increased 8.83% to $8.63.
New Hope Corporation Ltd (ASX: NHC) shares lifted 3.75% to $5.53 apiece.
ASX 200 market sector snapshot
Here's how the 11 market sectors stacked up last week, according to CommSec data.
Over the five trading days:
| S&P/ASX 200 market sector | Change last week |
| Energy (ASX: XEJ) | 1.96% |
| Industrials (ASX: XNJ) | 1.51% |
| A-REIT (ASX: XPJ) | 1.17% |
| Financials (ASX: XFJ) | (0.31%) |
| Communication (ASX: XTJ) | (0.76%) |
| Consumer Discretionary (ASX: XDJ) | (0.8%) |
| Information Technology (ASX: XIJ) | (0.85%) |
| Materials (ASX: XMJ) | (1.25%) |
| Utilities (ASX: XUJ) | (1.49%) |
| Healthcare (ASX: XHJ) | (2.91%) |
| Consumer Staples (ASX: XSJ) | (5.45%) |
