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Crude oil jumps as US-Iran tensions threaten supplies
September WTI is up 6.7%, and weekly EIA crude inventories fell to a 7.75-year low, adding to tightening supply concerns.
Crude oil prices surged as US-Iran tensions escalated, with fresh Middle East hostilities raising concerns about global energy supplies. According to Yahoo Finance, September WTI crude oil (CLU26) was up 5.3, or 6.7%, while September RBOB gasoline (RBU26) rose 2.6% during the move.
The gains accelerated after President Trump said the US would respond forcefully to an attack from Iran that targeted a US base in Jordan. Yahoo Finance also cited an Islamic Revolutionary Guard Corps statement that it targeted a US airbase and command center in Jordan with ballistic missiles, and claimed it halted tankers attempting to transit the Strait of Hormuz.
Inventory and logistics factors added support to prices, Yahoo Finance reported. Weekly EIA crude inventories fell unexpectedly to a 7.75-year low, and crude supplies at Cushing dropped to a nearly 12-year low, while tighter flows through the Strait of Hormuz were described as a key driver.
The article also pointed to ongoing regional risks and additional disruptions, including the International Maritime Organization warning that it is too dangerous to cross the Strait of Hormuz, plus Ukraine intensifying drone attacks on Russian oil infrastructure. Yahoo Finance added that Russian crude production fell to 8.928 million bpd in June, the lowest in 2.5 years, according to monthly OPEC data.
Latest closeWTI crude $86.80 ▲3.8%|Gasoline (RBOB) $3.171 ▼3.5%