Oil Extends Gains

WTI crude futures jumped back above $90 per barrel on Thursday, rising for a second straight session as persistent concerns over the Iran war overshadowed a coordinated release of oil reserves by major economies. Iran told intermediaries that the US must guarantee that neither it nor Israel will strike the country in the future for a ceasefire to be considered. Washington is unlikely to accept those conditions, further dimming prospects for a near-term resolution. The crucial Strait of Hormuz also remains effectively shut, with several commercial vessels reportedly struck off the coast of Iran. That has prompted major Middle Eastern producers to significantly curb output, tightening global supply and pushing energy prices higher. Meanwhile, the IEA approved its largest-ever release of emergency oil reserves, with member states set to release 400 million barrels. That includes 172 million barrels from the US, while Japan will release 80 million barrels.

WTI crude futures rose more than 4% on Wednesday afternoon, trading near $87 per barrel after briefly approaching $89 earlier in the session, as a historic release of emergency reserves from the International Energy Agency failed to offset fading hopes for a near-term end to the war. The conflict in the Middle East showed no signs of easing following attacks on several commercial vessels off Iran’s coast. Iran has told regional mediators it would only agree to a ceasefire if the United States guarantees that neither it nor Israel will launch future strikes against the country. Washington is unlikely to accept those conditions, further dimming prospects for a near-term resolution. Earlier in the day, Donald Trump told Axios in a brief phone interview that the war would end “soon” because there is “practically nothing left to target.” Meanwhile, the IEA approved its largest-ever release of emergency oil reserves, with member states set to release 400 million barrels.

WTI crude futures pared some gains on Wednesday, trading around $87 per barrel after briefly approaching $89, as traders continued to assess attacks in the Strait of Hormuz while the International Energy Agency approved its largest-ever release of emergency oil reserves, with member states set to release 400 million barrels. Earlier in the day, Japanese Prime Minister Sanae Takaichi said the country could release oil from its national reserves as early as next week. Still, the conflict with Iran shows no signs of easing, with mixed signals from the US administration adding to uncertainty. US President Donald Trump told Axios in a brief phone interview on Wednesday that the war would end “soon” because there is “practically nothing left to target.” A day earlier, US Defense Secretary Pete Hegseth said it “will be our most intense day of strikes". Meanwhile, OPEC kept its forecasts for global oil demand growth in 2026 and 2027 unchanged in its March report.