WTI Surges More Than 7%

WTI crude oil futures jumped more than 7% to above $107 per barrel on Wednesday afternoon, as prospects remain dim for a near-term resolution to the Iran conflict or the reopening of the Strait of Hormuz. President Trump said the US would keep its naval blockade on Iran in place until it agrees to a nuclear deal. The surge comes as markets weigh the shock exit of the OPEC by the United Arab Emirates. Meanwhile, US inventory data showed sharp declines in crude and fuel stockpiles, while exports surged to record highs above 6 million barrels per day, underscoring tightening global supply.

WTI crude oil futures jumped more than 6% to above $106 per barrel on Wednesday, amid no signs of a near-term end to the conflict with Iran or the reopening of the Strait of Hormuz. The surge comes as markets weigh the shock exit of the OPEC by the United Arab Emirates alongside signs that the conflict involving Iran may persist. Reports that Donald Trump is preparing to extend a blockade on Iranian ports have heightened fears of prolonged supply disruptions, particularly through the critical Strait of Hormuz. Negotiations remain stalled, with both sides entrenched, raising expectations that the standoff could drag on for weeks. Meanwhile, US inventory data showed sharp declines in crude and fuel stockpiles, while exports surged to record highs above 6 million barrels per day, underscoring tightening global supply. Gasoline and refined fuel prices have also spiked, amplifying inflation concerns worldwide as energy markets remain on edge.

WTI crude futures rose above $103 per barrel on Wednesday, gaining for the third straight session, supported by mounting uncertainty around global supply as US-Iran peace talks stalled and the Strait of Hormuz remained effectively closed. President Donald Trump said Iran has urged the US to lift its naval blockade of the strait while negotiations to end the conflict continue, with disruptions already constraining energy flows from the Middle East. The shutdown of this vital corridor has halted roughly 20% of global oil shipments, triggering what the IEA called the largest supply shock on record. At the same time, the US intensified pressure on Iran through additional measures, including potential sanctions on Chinese refiners linked to Tehran and on countries paying transit fees to secure passage through Hormuz. Elsewhere, the ongoing conflict has prompted the UAE to announce its exit from OPEC next month for greater flexibility in adapting to shifting market conditions.