West Texas Intermediate (WTI) oil prices climbed for the third consecutive day, trading around $93.00 per barrel during Asian hours on Thursday, as supply concerns intensified due to ongoing uncertainty in the Middle East and the blockade of the Strait of Hormuz [1]. According to the Wall Street Journal, Iran fired on three ships in the Strait of Hormuz and escorted two of them into Iranian waters on Wednesday, with Iranian media reporting that the paramilitary Revolutionary Guard was moving the vessels to Iran, marking a further escalation in the region [1]. White House press secretary Karoline Leavitt stated that the seizures did not breach the terms of the ceasefire [1].
Iranian parliament speaker and chief negotiator Mohammad Bagher Ghalibaf declared that reopening the strait would be "impossible" while the United States and Israel continue what he described as "flagrant" ceasefire violations, including the US naval blockade [1]. Meanwhile, President Donald Trump said the current truce would remain in place indefinitely as Washington awaits a renewed peace proposal from Tehran [1].
In response to the supply disruptions linked to the Iran war, US crude oil and petroleum product exports rose by 137,000 barrels per day (bpd) to a record 12.88 million bpd, as buyers in Asia and Europe increased purchases [1]. Despite these export gains, the Energy Information Administration (EIA) reported that US oil inventories increased by 1.925 million barrels, contrary to expectations for a 1.2 million-barrel draw [1].
The combination of geopolitical tensions, supply disruptions, and unexpected inventory builds has contributed to the recent upward momentum in WTI oil prices [1].
CONCLUSION
WTI oil prices surged to near $93.00 per barrel as escalating tensions and a blockade in the Strait of Hormuz fueled supply concerns. Despite record US exports, inventory builds and ongoing geopolitical risks are keeping the market on edge, suggesting continued volatility in oil prices.