US Strikes on Iran Fuel 7% Oil Price Surge
Oil prices surged on Thursday after the US resumed strikes in Iran, pushing the price of West Texas Intermediate (WTI) above $84.00, a 7% increase over the last two days.
The resumption of hostilities in the Middle East and the threat that the war might spill over the region have added a risk premium to crude prices.
Data from the Energy Information Administration (EIA) revealed that US commercial oil inventories declined by 7.167 million barrels in the week ending July 24, exceeding market expectations of a 2.5 million draw.
TD Securities noted that the return of Iranian-US strikes after a multi-day pause and continued Houthi risks for Saudi energy infrastructure are keeping flows in both the Strait of Hormuz and Bab el-Mandeb heavily constrained.