Oil Jumps as US-Iran Conflict Escalates; WTI Tops $92 a Barrel
Summary
- Oil rose as clashes between the US and Iran continued, with WTI climbing as much as 2.6%% to $92.39 a barrel.
- The market is increasingly concerned that a prolonged conflict could keep the Strait of Hormuz blocked and undermine the durability of the regional ceasefire in the Middle East.
- According to the US Energy Information Administration (EIA), US crude inventories fell by 7.2 million barrels last week for a seventh straight weekly decline, adding to upward pressure on oil prices.
Forecast Trend Report by Period
Oil climbed as the conflict between the US and Iran intensified, renewing concerns over supply disruptions as a Middle East ceasefire came under strain.
According to Bloomberg, West Texas Intermediate futures rose as much as 2.6% intraday on June 10 to $92.39 a barrel. Brent crude also traded near $93 a barrel.
Prices advanced after the US launched additional airstrikes on Iran. The US military said it struck multiple targets inside Iran on June 10, shortly after President Donald Trump criticized Tehran for delaying a temporary peace deal.
Iran said it would not bow to US pressure. The renewed military tensions have also heightened concern over whether a ceasefire in the Middle East can be sustained over the longer term.
The latest strikes were viewed as an extension of retaliation after a US Army Apache helicopter was shot down near Oman on June 10. Markets are watching whether a prolonged conflict could keep the Strait of Hormuz blocked. The waterway is a critical route for global crude and natural gas shipments.
Separately, US Energy Information Administration data showed US crude inventories fell by 7.2 million barrels last week, marking a seventh straight weekly decline. Stockpiles at Cushing, Oklahoma, the delivery hub for US crude, also slipped. The inventory draw added to upward pressure on oil prices.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
