WTI crude oil futures surged more than 3% toward $78 per barrel on Thursday, approaching their highest level since January 2025, as the conflict in the Middle East disrupted global oil supplies. The Chinese government has ordered its major refiners to suspend diesel and gasoline exports amid rising tensions in the Persian Gulf. Fears of further escalation involving Iran and persistent regional instability have left investors on edge, particularly as shipping through the Strait of Hormuz — a key global oil transit chokepoint — faces disruptions.
Measures aimed at reassuring markets, including proposals for expanded vessel insurance and naval escorts, have so far failed to restore confidence, with investors watching closely for any indication that the conflict could drag on. At the same time, EIA data showed that US crude inventories rose by 3.5 million barrels to 439.3 million, significantly above expectations and offering some cushion against potential supply shocks.
