WTI crude futures rebounded on Wednesday, reversing early losses to trade more than 2% higher and moving back toward $86 per barrel, after slumping roughly 12% in the previous session.
Traders remain focused on the conflict involving Iran, with significant uncertainty over its duration. US Defense Secretary Pete Hegseth said yesterday that “it will be our most intense day of strikes,” underscoring expectations of continued military escalation. At the same time, major Middle Eastern producers have collectively cut output by more than 6 million barrels per day, while the Strait of Hormuz remains effectively closed, tightening supply conditions.
An initial bout of relief followed a Wall Street Journal report that the International Energy Agency had proposed the largest coordinated release of strategic oil reserves in its history. However, that move was not enough to maintain downward pressure on prices. The G7 has expressed support in principle for a coordinated release, but no concrete steps have yet been taken.
Later today, OPEC is due to publish its monthly outlook on the global crude market, which investors will scrutinize for updated supply-demand projections and guidance.
