Iran Tensions Send Oil Prices on Wild Ride Amid Supply Worries

Oil prices have been volatile this week as traders react to the ongoing tensions between Iran and the US over the Strait of Hormuz. The West Texas Intermediate (WTI) settled little changed near $83 a barrel, after jumping 10% over the previous four sessions.

The Energy Information Administration reported that US crude inventories expanded by 17.4 million barrels last week, nearly double the increase estimated by a widely followed industry group. This is the biggest build in more than three years and coincided with imports rising to the highest level since November 2024.

Despite this, concerns about supply losses spurred by the Iran war persist. Data released Wednesday by the International Energy Agency showed that global oil inventories will fall this quarter at more than twice the rate previously estimated. Markets are estimated to face a shortfall of 1.8 million barrels a day.