Brent crude settled at $93.10 per barrel, up $1.65 (1.8%), while West Texas Intermediate (WTI) crude closed at $90.03 per barrel, gaining $1.83 (2.0%). Both benchmarks surged by roughly $3 during afternoon trading after Trump reiterated that additional military strikes against Iran remained possible following an overnight exchange of fire between the two countries.
Prices retreated from session highs later in the day after Trump stated that the U.S. military had secretly escorted vessels carrying more than 100 million barrels of oil through the Strait of Hormuz, helping prevent a more severe disruption to global energy supplies. The Strait remains a focal point for oil markets, as it normally handles roughly one-fifth of global crude oil and liquefied natural gas shipments.
Market sentiment shifted back toward concerns over supply risks after U.S. forces conducted new strikes against Iranian targets in response to the reported downing of a U.S. Apache helicopter. The U.S. military also carried out a separate operation against a vessel in the Gulf of Oman that it said was transporting Iranian oil and failed to comply with instructions.
Support for oil prices also came from tightening U.S. inventories. Data from the Energy Information Administration (EIA) showed crude oil stockpiles fell by 7.2 million barrels during the week ended June 5, substantially exceeding expectations for a draw of roughly 4 million barrels. The report also showed inventories in the Strategic Petroleum Reserve fell to their lowest level since August 2023.
In response to ongoing supply concerns, the Department of Energy announced plans to make up to 40 million barrels of crude oil available through loans from the Strategic Petroleum Reserve to energy companies.
Despite the upward pressure from geopolitical developments and falling inventories, several factors continued to limit gains. Chinese crude oil imports remain weak, and some shipping traffic has resumed through the Strait of Hormuz, although volumes remain well below pre-conflict levels. Iran continues to restrict most maritime traffic through the waterway, while the United States maintains sanctions and restrictions on Iranian oil exports.
Meanwhile, elevated energy prices have begun feeding into broader inflation concerns. U.S. consumer prices accelerated in May at their fastest annual pace in three years, increasing expectations that the Federal Reserve could maintain a restrictive monetary policy stance for longer.