WTI crude oil futures extended their rally to $66.50 per barrel on Thursday, the highest level since early August 2025, as escalating tensions between the US and Iran raised concerns about Middle Eastern supply. Reports citing government officials indicated that the US could soon launch a military operation in the region, with Israel reportedly advocating for regime change in Tehran.
At the same time, the head of the United Nations nuclear watchdog warned that Iran’s window for reaching a diplomatic agreement is narrowing amid the US military buildup. Any conflict could disrupt traffic through the Strait of Hormuz, a key chokepoint that handles roughly one-third of global seaborne oil trade.
Adding to the bullish tone, new data from the EIA showed that US crude inventories plunged by 9 million barrels in the second week of February, defying market expectations for a 2 million barrel build that would have fully offset the 8.5 million barrel increase recorded the previous week.
