WTI crude futures climbed above $103 per barrel on Wednesday, rising for a third consecutive session as mounting uncertainty over global supply weighed on markets. US-Iran peace talks have stalled, and the Strait of Hormuz remains effectively closed. President Donald Trump said Iran has called on the US to lift its naval blockade of the strait while negotiations to end the conflict continue, with existing disruptions already constraining energy flows from the Middle East.
The closure of this critical chokepoint has halted roughly 20% of global seaborne oil shipments, triggering what the IEA has described as the largest supply shock on record. At the same time, Washington has intensified pressure on Tehran through additional measures, including potential sanctions on Chinese refiners with ties to Iran, as well as on countries paying transit fees to secure safe passage through Hormuz.
Separately, the ongoing conflict has prompted the UAE to announce that it will leave OPEC next month, seeking greater flexibility to respond to rapidly shifting market conditions.
