WTI crude futures climbed more than 4% on Wednesday afternoon, trading near $87 per barrel after briefly approaching $89 earlier in the session. The gains came as a historic release of emergency reserves by the International Energy Agency failed to counter waning expectations for a near-term end to the war.
Tensions in the Middle East showed no sign of easing following attacks on several commercial vessels off Iran’s coast. Tehran has reportedly told regional mediators it would accept a ceasefire only if the United States guarantees that neither it nor Israel will carry out future strikes on Iranian territory. Washington is widely seen as unlikely to agree to such terms, further diminishing hopes for a swift resolution.
Earlier in the day, Donald Trump told Axios in a brief phone interview that the war would end “soon,” claiming there is “practically nothing left to target.”
At the same time, the IEA approved its largest-ever drawdown of emergency oil reserves, with member countries set to release a total of 400 million barrels.