WTI crude futures advanced toward $97 per barrel on Friday, rising for a third consecutive session after Iran’s new Supreme Leader, Mojtaba Khamenei, vowed to keep the Strait of Hormuz effectively closed. He also cautioned that Iran could open additional fronts in the conflict if the US and Israel persist with their attacks.
At the same time, US President Donald Trump said that preventing Iran from acquiring nuclear weapons and becoming a threat to the Middle East is a higher priority for him than the cost of oil. Since the conflict erupted earlier this month, tankers have been unable to load crude in the Gulf, effectively sidelining 20% of global oil trade and forcing GCC producers to cut output by 10 million barrels per day once storage capacity was reached.
The International Energy Agency described the disruption as the largest in the history of the oil market, prompting member countries to approve the release of 400 million barrels from strategic reserves.