WTI crude futures traded above $99 per barrel on Wednesday, extending a gain of more than 3% in the previous session. Prices were supported by mounting uncertainty over global supplies as US–Iran peace talks stalled and the Strait of Hormuz remained effectively closed.
President Donald Trump said Iran has pressed 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 shutdown of this crucial chokepoint has halted roughly 20% of global oil shipments, prompting the IEA to describe it as the largest supply shock on record.
At the same time, Washington has intensified pressure on Tehran through additional measures, including the prospect of sanctions on Chinese refiners with ties to Iran and on countries paying transit fees to secure passage through Hormuz. Separately, the ongoing conflict has led the UAE to announce that it will leave OPEC next month, seeking greater flexibility to respond to rapidly changing market conditions.
