Oil prices climbed further on Wednesday, building on gains from recent sessions, after reports indicated the United States is preparing to extend its blockade of Iranian ports—raising the likelihood of continued supply disruptions across the Middle East.
According to The Wall Street Journal, Donald Trump has directed aides to get ready for a prolonged blockade targeting Iran, citing U.S. officials.
The report noted that Trump intends to intensify pressure on Iran’s economy and oil exports by restricting maritime access to and from its ports.
Brent crude for June delivery rose 52 cents, or 0.47%, to $111.78 per barrel at 01:54 GMT, marking its eighth consecutive day of gains. The June contract is set to expire on Thursday, while the more actively traded July contract was up 0.4% at $104.84.
U.S. West Texas Intermediate crude for June advanced 57 cents, or 0.57%, to $100.50 per barrel, following a 3.7% gain in the previous session. Prices have now risen in seven of the past eight trading days.
“The recent rise in oil prices has been driven by the Strait blockade. If Trump is prepared to extend the blockade, supply disruptions would worsen further and continue to push oil prices higher,” said Yang An, an analyst at Haitong Futures.
Although a ceasefire is in place in the U.S.-Israeli conflict involving Iran, negotiations remain stalled as all parties seek a formal resolution. Iran has continued to restrict shipping through the Strait of Hormuz—a vital corridor for roughly 20% of global oil and liquefied natural gas flows—while the U.S. maintains its blockade of Iranian ports.
Washington is pushing for an end to what it describes as Iran’s nuclear weapons program, while Tehran is calling for compensation following the recent conflict, relief from sanctions, and greater control over the Strait of Hormuz.
The ongoing disruption at Hormuz is also tightening global supply conditions. Market sources said the American Petroleum Institute reported a second consecutive weekly decline in U.S. crude inventories.
Crude stocks fell by 1.79 million barrels in the week ending April 24, according to the sources. Gasoline inventories dropped by 8.47 million barrels, while distillate stocks declined by 2.60 million barrels.