Crude Oil Holds Near 6-Week High

Crude oil futures rose up to a six-week high of $88.6 on Wednesday before easing to $86.5 as markets assessed the threat that a blockade of Middle Eastern oil will have on global supply. Strikes between the US and Iran continued to halt oil and fuel exports from the GCC. US Secretary of State Rubio accused Iran of failing to honor previous commitments and emphasized that any future agreement must guarantee freedom of navigation through the Strait of Hormuz and prevent Iran from developing nuclear weapons or supporting militant groups. Also, threats from Yemen’s Houthi rebels against shipping routes in the Red Sea increased fears of further disruptions to international oil trade. On top of that, attacks on the Caspian Pipeline Consortium terminal in the Black Sea added pressure on global energy markets. Still, data from the EIA showed that crude oil stocks unexpectedly rose by 1.4 million barrels last week, contrasting with expectations of a draw.

Crude oil surged 4% to above $87 per barrel on Wednesday, the highest in six weeks, as escalating tensions between the US and Iran increased concerns about global energy supply disruptions. The rise followed the 11th consecutive night of US strikes targeting Iranian military facilities and efforts to prevent threats to commercial shipping through the Strait of Hormuz. US Secretary of State Marco Rubio said Washington remains open to a diplomatic solution but accused Iran of failing to honor previous commitments. He emphasized that any future agreement must guarantee freedom of navigation through the Strait of Hormuz and prevent Iran from developing nuclear weapons or supporting militant groups. Also, threats from Yemen’s Houthi rebels against shipping routes in the Red Sea increased fears of further disruptions to international oil trade. On top of that, attacks on the Caspian Pipeline Consortium terminal in the Black Sea added pressure on global energy markets.

Crude oil surged more than 4% to a six-week high of $88 per barrel on Wednesday, extending gains for a fourth consecutive session as escalating geopolitical tensions fueled concerns over global supply. President Donald Trump dismissed the prospect of near-term negotiations with Iran and warned of broader military action, including possible strikes on the suspected nuclear facility at Pickaxe Mountain. He also pledged retaliation if Iran-backed Houthi rebels in Yemen disrupted shipping in the Red Sea. Meanwhile, the US military carried out an 11th consecutive day of strikes against Iran, saying the operations aim to reduce Tehran’s ability to threaten shipping through the Strait of Hormuz, which remains open. Supply concerns also spread beyond the Middle East after renewed attacks on the Caspian Pipeline Consortium terminal on Russia’s Black Sea coast, a key export route for Kazakh crude.