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West Texas Intermediate Crude Oil Prices Rise as U.S.-Iran War Disrupts Middle East Supply Chains

West Texas Intermediate crude oil futures rose to $86.78 a barrel on Friday, marking a second weekly increase as the ongoing U.S.-Iran war continues to disrupt global supply. The administration announced that the temporary ceasefire between Washington and Tehran has expired with no immediate plans to restart talks, leading to a stalemate that has kept the Strait of Hormuz operating far below normal capacity. While shipping traffic remains restricted, the market is reacting to the threat of economic retaliation. Trump said that no talks with Iran are currently scheduled, and he warned of "economic warfare and isolation on an unprecedented scale" for any nation providing a lifeline to Tehran. This pressure has already prompted the United Arab Emirates to suspend all financial and economic transactions with Iran. Despite a U.S. crude build of 4.4 million barrels, high refinery utilization and tight distillate inventories are keeping prices firm. Analysts suggest that while the U.S. has helped mitigate some shortages, the global market remains undersupplied by at least 4 million barrels per day, particularly affecting Asian consumers.

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