Brent crude closed at $90.49, up 2.71%; WTI at $85.76, up 2.83%.
U.S. Strategic Petroleum Reserve fell 3.1 mln barrels to 286.6 mln barrels.
Strait of Hormuz traffic dropped to five commodity vessels per day amid renewed tensions.
Market Impact of Iran‑US Escalation Oil markets reacted strongly to the latest flare‑up between the United States and Iran. Brent crude surged 2.71% to $90.49 a barrel, while U.S. West Texas Intermediate climbed 2.83% to $85.76. The price spike was triggered by missile attacks on U.S. bases in Jordan and President Trump’s vow to "hit them hard," heightening fears of supply disruptions in the Gulf.
Supply Chain & Reserve Outlook The U.S. Strategic Petroleum Reserve (SPR) saw a sharp decline, dropping 3.1 million barrels to 286.6 million, its lowest level in 44 years. Meanwhile, shipping data revealed only five commodity vessels traversing the Strait of Hormuz daily, a critical chokepoint that carries about a fifth of global oil flow. Analysts note that the reduced traffic, coupled with the recent military exchange, is likely to sustain a near‑term supply premium. In response, the U.S. Treasury has emphasized sanctions as a lever to bring Iran to the negotiating table, while Trump hinted that oil secured from Venezuela could replenish the SPR. Agreements with Chevron, GE Vernova, ONGC, Eni, and GeoPark are set to finalize, potentially easing some of the supply concerns.
