WTI crude futures paused around $80 a barrel after an 11% rally driven by the collapse of the U.S.-Iran ceasefire and a renewed U.S. blockade on Iranian shipping through the Strait of Hormuz. A weekly EIA report showing a crude draw of 1.7 million barrels added support.
WTI crude oil futures paused around $80 a barrel after an 11% rally, taking a breather as traders weighed sharply higher geopolitical risk. The move followed the collapse of the U.S.-Iran ceasefire, according to CME Group's Phillip Streible.
The Strait of Hormuz drives the rally
Tensions stayed high after the U.S. resumed its blockade on Iranian shipping through the Strait of Hormuz. The waterway carries roughly 20% of global oil and gas shipments, a chokepoint that keeps the crude market sensitive to any disruption for those who trade oil.
Brent, the international benchmark, reflected the same pressure. It gained 1.72% to settle at $86.19 per barrel following the escalation of military strikes, while WTI advanced 1.4% to trade at $80.4 per barrel.
Inventory data backs the move higher
Fundamentals reinforced the geopolitical bid. The weekly EIA report showed a crude draw of 1.7 million barrels, alongside gasoline inventories falling by 1.5 million barrels during peak summer driving season. Both draws point to firm demand as supply worries mount.
Natural gas told a separate story. Natural gas futures snapped a four-day losing streak on declining production, though gains stayed capped by forecasts of cooler weather in the Southwest and low LNG export flows.
Sources: CME Group (snippet-based), Sahi
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