Global oil prices rallied sharply on Wednesday, climbing more than 6% amid escalating geopolitical tensions and fresh signs of tightening supply in the United States.
Futures for Brent crude oil jumped more than 7 percent to around $119 per barrel, while West Texas Intermediate rose above $107, as markets reacted to developments in the Middle East and bullish inventory data.
Latest Oil Prices:
WTI Crude • 108.1 +1.19 +1.11%
Brent Crude • 118.0 +6.77 +6.08%
Murban Crude • 113.5 +6.77 +6.34%
WTI Midland • 111.0 +7.42 +7.16%
Opec Basket • 109.4 +1.82 +1.69%
Indian Basket • 112.8 +2.78 +2.53%
Natural Gas • 2.642 -0.005 -0.19%
Gasoline • 3.753 +0.012 +0.33%
Heating Oil • 4.199 +0.228 +5.73%
The price spike followed remarks by U.S. President Donald Trump, who confirmed the continuation of the naval blockade on Iran until a nuclear agreement is reached, a move that has increased concerns about disruptions to global supplies.
he crisis is centered around the Strait of Hormuz, through which about 20% of the world's oil and gas supplies pass, and its closure has exacerbated pressures on markets and pushed prices higher.
In a parallel development, the OPEC faces fresh uncertainty after the United Arab Emirates announced plans to exit the organization starting May 1. Analysts say the move could weaken OPEC’s market influence, though its immediate impact on prices remains secondary to
Supporting the bullish trend, data from the U.S. Energy Information Administration showed a sharp drawdown in U.S. fuel inventories, with crude stocks falling by 6.2 million barrels to 459.5 million, gasoline declining by 6.1 million barrels, and distillates dropping by 4.5 million barrels.
Stockpiles at the key delivery hub in Cushing, Oklahoma, also decreased, signaling tighter supply conditions in the U.S. market.
Meanwhile, refinery activity picked up slightly, with crude processing rising by 84,000 barrels per day and utilization rates edging higher.
The combination of declining inventories and ongoing disruptions to shipping routes has heightened concerns about a prolonged supply squeeze. Analysts note that continued restrictions on Iranian exports and maritime traffic could sustain upward pressure on prices in the near term.
With global markets already drawing down reserves, the outlook for oil remains highly sensitive to geopolitical developments, particularly any changes in the situation around the Strait of Hormuz.
For now, traders appear focused on one key question: how long supply disruptions will last, and how far prices could climb if they persist.
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