West Texas Intermediate (WTI) crude oil prices extended their rally for a fourth consecutive day, trading around $105.70 per barrel during Asian hours on Thursday, driven by escalating geopolitical tensions and tightening supply conditions [1]. The core catalyst for the price surge is the deepening naval blockade of Iranian ports. US President Donald Trump stated that the blockade will remain in place until a deal is reached with Tehran over its nuclear program, dismissing proposals to reopen the key shipping route and emphasizing economic pressure over military action [1].
Iranian officials have responded with warnings of potential retaliation if the blockade continues, accusing President Trump of attempting to force compliance through economic coercion and efforts to destabilize Iran internally [1]. The heightened tensions have contributed to market concerns about potential disruptions to global oil supply.
Supporting the bullish momentum, the US Energy Information Administration (EIA) reported a sharp decline in crude inventories by 6.233 million barrels for the week ending April 24, reversing the previous week's increase of 1.925 million barrels [1]. Additionally, US oil exports surged to record levels above 6 million barrels per day, further tightening global supply [1].
The rising tensions in the Middle East have also increased the attractiveness of Canada’s oil and gas sector to global energy majors. Notably, Shell’s $16.4 billion acquisition of ARC Resources underscores renewed interest, while companies such as TotalEnergies, ConocoPhillips, Equinor, and BP are reportedly re-evaluating Canadian peers [1].
CONCLUSION
WTI crude oil prices have surged above $105.50 per barrel amid a deepening Iranian port blockade and sharply lower US inventories, signaling heightened supply risks. The market is reacting strongly to geopolitical tensions and tightening fundamentals, with increased interest in alternative supply sources such as Canada. The situation remains fluid, with further developments in US-Iran relations likely to influence oil prices.