Sharp rise in oil prices as US stockpiles decline and the Strait of Hormuz crisis continues

Exclusive Follow-ups – Al-Khabar Al-Yemeni:
Oil futures prices rose by 5% today, Wednesday, exceeding $117 per barrel, driven by a sharp decline in US crude oil stockpiles, coinciding with escalating tension in the Strait of Hormuz and fears of an extended blockade on Iran, deepening the global supply crisis.
The US Energy Information Administration (EIA) reported that crude oil inventories fell by 6.2 million barrels during the week ending April 24, far exceeding analysts’ expectations, who had forecast a decline of only about 231,000 barrels.
On the back of this data, Brent crude futures rose to $116.85 per barrel, an increase of $5.59, while West Texas Intermediate crude rose $4.74 to reach $104.67 per barrel.
Brent crude later recorded around $117.33 per barrel, continuing its daily gains.
Navigation traffic remains almost paralyzed following Iran’s closure of the corridor, in direct retaliation for the ongoing American naval blockade on its ports.
Reports indicated that the Trump administration is preparing to extend the blockade, leading analysts to remove the scenario of a near-term truce.
This escalation comes after the round of indirect negotiations in Islamabad failed to achieve any breakthrough. Tehran announced its refusal to return to the negotiating table under the duress of blockade and threats, insisting on its conditions of lifting the naval blockade and stopping the aggression on Lebanon as a precondition for any dialogue.
With the stalemate continuing, global markets are heading towards a new phase of disruption and record price increases.