FX.co ★ Oil Extends Rally as Iran War Drags On

WTI crude futures rose above $108 per barrel on Thursday, gaining nearly 15% so far this week as the ongoing Middle East conflict kept the Strait of Hormuz effectively closed, disrupting a substantial share of global energy shipments. President Donald Trump said the United States will maintain its naval blockade on Iran until a new nuclear agreement is reached, and he outlined potential steps to extend the blockade while limiting the impact on US consumers in discussions with oil and trading executives. Meanwhile, Iranian officials warned of retaliation if the blockade continues and accused Trump of attempting to force Tehran into compliance through economic pressure and efforts to foment internal instability. In addition, US inventory data showed sharp drawdowns in crude and fuel stockpiles, while exports jumped to a record high above 6 million barrels per day, highlighting tightening conditions in global supply.