Oil Extends Rally as Iran War Drags On

WTI crude futures climbed above $107 per barrel on Thursday, rallying nearly 15% so far this week as the ongoing Middle East conflict kept the Strait of Hormuz effectively closed, cutting off significant volumes of global energy flows. President Donald Trump stated that the US will maintain its naval blockade on Iran until a nuclear agreement is reached, while also outlining potential measures to extend the blockade with limited impact on domestic consumers during talks with oil and trading executives. At the same time, Iranian authorities warned of retaliation should the blockade persist and accused Trump of attempting to coerce Tehran into submission through economic pressure and internal destabilization. Elsewhere, 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 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.