Oil Drops as Supply Concerns Ease

WTI crude futures fell below $93 per barrel on Wednesday, reversing gains from the previous session after Iraq reached a deal to resume oil exports through Turkey’s Ceyhan port, easing concerns over supply disruptions tied to the Iran war. The US also stepped up efforts to push for the reopening of the Strait of Hormuz, though allied nations have so far rejected President Donald Trump’s call to help safeguard shipping through the narrow waterway. Still, Iran has allowed safe passage for some vessels depending on their affiliations. Meanwhile, Iranian state media confirmed the death of Ali Larijani, secretary of the Supreme National Security Council and a key figure in the country’s wartime leadership. Iran has also intensified attacks on regional energy infrastructure this week, including strikes on Saudi Arabia’s eastern province.

WTI crude futures fell below $95 per barrel on Wednesday, paring gains from the previous session as investors navigated ongoing hostilities in the Middle East and uncertainty surrounding the Strait of Hormuz. Iranian state media confirmed the death of Ali Larijani, secretary of the Supreme National Security Council and a key figure in the country’s wartime leadership. Iran has intensified attacks on regional energy infrastructure this week, including strikes targeting Saudi Arabia’s eastern province. Meanwhile, US allies have rebuffed President Donald Trump’s call for support in safeguarding commercial shipping through the Strait of Hormuz. Trump later dropped efforts to rally partners for the war with Iran and criticized allied nations. Still, Iran has permitted safe passage for some vessels through the narrow waterway depending on their affiliations.

WTI crude oil futures rose more than 2% to $96 per barrel on Tuesday, recovering from a 5.3% drop the day before, as Iran continued attacks on energy infrastructure across the Middle East and Israel reported killing senior Iranian officials. Operations at the Shah gas field in the UAE were suspended, and an Iraqi oil field was also struck by drones and missiles. Loadings from Fujairah were again halted, further straining global supply as the war enters its third week and the near-complete closure of the Strait of Hormuz starts affecting consumers. Oil has surged over 40% since the conflict began, though prices eased on Monday ahead of the first US emergency reserve release. President Trump said Washington is focused on degrading Tehran’s ability to threaten international shipping and urged other nations to help secure the Strait of Hormuz, but several key US allies have rebuffed his call to send warships to escort vessels through the strait.