Crude Oil Extends Increase to 6-Month High

WTI crude oil futures rose toward $67 per barrel on Friday, hitting a six-month high and heading for a weekly gain of more than 5%, after President Donald Trump set a deadline for Iran to reach a nuclear agreement. Trump signaled that negotiations would likely have no more than 10 to 15 days to advance. At the same time, the US has deployed its largest military buildup in the Middle East since the 2003 Iraq invasion, raising the prospect of a broader and more sustained operation than last June’s overnight strike on Iran’s nuclear facilities. The move has heightened the risk of supply disruptions, with investors concerned that a US-Iran conflict could prompt Iran to restrict traffic through the Strait of Hormuz, a critical corridor for crude exports from the region. Adding to bullish momentum, government data showed US crude inventories fell by 9 million barrels last week, marking the steepest draw since early September.

WTI crude oil futures extended their rally to $66.5 per barrel on Thursday, the highest since early August 2025 as rising tensions between the US and Iran threatened supply from the Middle East. Reports citing government officials noted that the US could begin a military operation in the Middle East soon, with Israel pushing for regime change in Tehran. The head of the United Nations nuclear watchdog warned Iran's window for a diplomatic deal is narrowing amid a US military build up. Conflict could threaten flows through the Strait of Hormuz, which sees tanker activity of a third flows for one third of seaborne oil trade. In the meantime, a fresh report from the EIA showed that oil inventories in the US plummeted by 9 million barrels on the second week of February, contrasting sharply with market expectations of a 2 million barrel build to fully erase the 8.5 million build from the previous week.

Crude Oil increased to 66.49 USD/Bbl, the highest since August 2025. Over the past 4 weeks, Crude Oil WTI gained 9.97%, and in the last 12 months, it decreased 8.42%.