Crude oil prices continued their upward climb Wednesday after reports emerged that President Trump may extend the United States blockade of Iranian ports, potentially worsening supply chain disruptions in the Middle East.
According to a Wall Street Journal report published Tuesday evening, Trump has directed his staff to prepare for a prolonged blockade of Iran. The strategy aims to maintain economic pressure on Iran while restricting oil exports by blocking maritime traffic to and from Iranian ports, according to U.S. officials cited in the report.
June Brent crude futures climbed 52 cents to reach $111.78 per barrel by early Wednesday, marking an eighth consecutive day of gains. The contract is set to expire Thursday, while the more actively traded July contract increased 0.4% to $104.84.
U.S. West Texas Intermediate crude for June delivery rose 57 cents to $100.50 per barrel, building on the previous session’s 3.7% increase and extending gains for seven of the past eight trading days.
“The recent rise in oil prices has been driven by the Strait blockade. If Trump is prepared to extend the blockade, supply disruptions would worsen further and continue to push oil prices higher,” said Yang An, an analyst at Haitong Futures.
While a ceasefire exists in the U.S.-Israeli conflict with Iran, negotiations for a permanent resolution remain stalled. Iran has closed shipping lanes through the Strait of Hormuz, a critical waterway that handles approximately 20% of worldwide oil and liquefied natural gas transportation, while the U.S. maintains its port blockade.
Washington seeks an end to what it characterizes as Iran’s nuclear weapons development program, while Tehran demands compensation for recent hostilities, relief from economic sanctions, and some degree of authority over Strait of Hormuz operations.
The Hormuz closure continues to drain global oil reserves, with industry sources reporting Tuesday that the American Petroleum Institute documented another weekly decline in U.S. crude inventories.
Crude stockpiles decreased by 1.79 million barrels during the week ending April 24, according to the sources. Gasoline reserves dropped by 8.47 million barrels, while distillate stocks fell by 2.60 million barrels.
