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.
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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.