April WTI crude oil prices rose significantly on Thursday, closing up by 9.72% at $119.48 per barrel, following remarks from Iranian Supreme Leader Ayatollah Mojtaba Khamenei that suggested Iran might close the Strait of Hormuz and escalate military actions against Gulf neighbors. Additionally, UK Defense Secretary Grant Shapps noted increasing evidence of Iranian mine-laying in the critical shipping passage.
In related developments, President Trump commented on prioritizing the prevention of a nuclear-armed Iran over oil prices, which indicates ongoing geopolitical tensions. The Strait of Hormuz, crucial for global oil transport, typically carries one-fifth of the world’s oil, remains effectively closed. Iraq suspended oil terminal operations and Oman temporarily evacuated oil export infrastructure due to heightened conflict in the region.
As of March 6, U.S. crude oil inventories showed an unexpected rise of 3.824 million barrels, while production slightly decreased to 13.678 million barrels per day. This comes amidst OPEC+’s plans to increase output by 206,000 barrels per day in April, although these plans are now complicated by the ongoing regional crisis.
