-- West Texas Intermediate (WTO) crude oil rose Wednesday after the United States extended a ceasefire with Iran while continuing to blockade the country's ports, and as Iran attacked ships in the Persian Gulf while rejecting talks with the U.S. until the blockade is lifted.
WTI crude oil for June delivery closed up US$3.29 to settle at US$92.96 per barrel, while June Brent oil was last seen up US$3.65 to US$102.13.
Oil markets continue to react to developments in the U.S. war on Iran, which has blocked the Strait of Hormuz, trapping shipments from the Persian Gulf nations that supplied 20% of daily oil demand. While U.S. President Trump on Tuesday extended a ceasefire for attacks on the country, he refused to lift a blockade on Iran's ports. Iran has made lifting the blockade a key demand for resuming negotiations to end the war.
"Oil prices continue to whipsaw ... after Trump extended the ceasefire with Iran, even as peace talks remain on hold due to Tehran's refusal to negotiate while the US maintains its naval blockade ... the result is a continued and severe, and potentially growing, disruption to flows, with the Strait of Hormuz effectively closed," Ole Hansen, head of commodity strategy at Saxo Bank, wrote.
Despite the U.S. ceasefire, Iran attacked three ships on Wednesday, the Wall Street Journal reported, while U.S. forces boarded a sanctioned tanker in the Indian Ocean.
In its weekly report, the Energy Information Administration said U.S. commercial crude oil inventories rose by 1.9-million barrels last week, while inventories of gasoline and distillates fell.