-- Crude oil futures advanced in midday trading on Wednesday after a larger-than-expected gasoline and distillate stock draw in the US, while reports of gunfire attacks on at least three container ships in the Strait of Hormuz lent further price support.
Front-month West Texas Intermediate crude futures climbed by 3.84% to $93.11 per barrel, while Brent futures rose 3.39% to $101.14/bbl.
Soojin Kim, research analyst at MUFG, said that with key disputes unresolved, including nuclear concerns and regional conflicts, the oil market remains highly sensitive to geopolitical developments, with prices supported by ongoing supply disruptions.
The latest data from the Energy Information Administration shows that crude stocks rose, while gasoline and distillate inventories posted surprise draws in the week ended April 17.
Crude inventories rose by 1.9 million barrels to 465.7 mmbbls, while US gasoline stocks fell by 4.6 mmbbls to 228.4 million barrels and distillate stockpiles fell by 3.4 mmbbls to 108.1 mmbbls, the EIA said.
On Wednesday, Iran's Islamic Revolutionary Guards said its naval forces stopped two ships attempting to cross the Hormuz and directed them to Iranian territorial waters. MarineTraffic said the two vessels are both operated by MSC.
The UK Maritime Trade Operations said that at least three vessels were targeted by gunfire in the Strait, as the Revolutionary Guards warned that any disruption to order and safety in the strategic waterway would be considered a "red line."
Saxo Bank strategists said that with supply losses effectively locked in for now, the market is set to face increasing strain if a resolution is delayed, and some caution that transit through the Strait may not fully return to normal.
On Tuesday, Trump said in a social media post that if the US lifted its blockade to open the Strait, "there can never be a deal with Iran, unless we blow up the rest of their country, their leaders included!"
"Iran doesn't want the Strait of Hormuz closed, they want it open so they can make $500 million dollars a day," Trump said in a post on Truth Social.
Meanwhile, the US President said that a ceasefire would stay in effect until a "seriously fractured" Iranian leadership can come up with a unified proposal for a permanent resolution.
Iranian officials have accused the US of breaching its commitments under a 10-point framework that Iran offered at the start of a fragile ceasefire, with Foreign Minister Abbas Araqchi calling the US blockade of Iranian ports an "act of war."
Soojin Kim, research analyst at MUFG, said despite the temporary pause in military escalation, peace talks have faltered, and tensions remain high as both sides continue to clash over shipping access and broader geopolitical issues.