A 7.167 million-barrel drop in US inventories and escalating Middle East conflict drive WTI prices higher.
West Texas Intermediate crude surged nearly 7% to around $84 per barrel, reversing a three-day decline. The rally followed Iran’s missile strike on a US base in Jordan and a sharper-than-expected 7.167 million-barrel draw in US crude inventories, exceeding forecasts of a 2.5 million-barrel decline.
The prior week saw a 2.011 million-barrel build, making the latest drop a stark contrast. Geopolitical risks intensified as the US threatened retaliation, imposed sanctions on Iranian tankers, and Iran rejected joint shipping management proposals for the Strait of Hormuz.
Supply disruptions now extend to the Red Sea, with Yemen’s Houthis considering fees for commercial ships. Analysts warn of prolonged volatility as two critical energy routes face potential blockades.