Oil Prices On June 11: Oil prices closed up nearly $2 on Wednesday after President Donald Trump said the U.S. is going to attack Iran "very hard" if no peace deal is finalized. Brent crude futures last traded 0.3% lower at $94 after settling at $93.10 per barrel, up $1.65 or 1.8%. US crude futures finished at $90.03 a barrel, up $1.83, or 2%. Both contracts jumped about $3 in afternoon trading after Trump reiterated that Iran would be attacked again following an exchange of fire overnight that was one of the most significant since an April ceasefire.
Prices pared gains toward the session's close after Trump said the U.S. military secretly escorted ships carrying more than 100 million barrels of oil out of the Strait of Hormuz.
Global oil consumption is roughly 100 million barrels per day. Trump suggested the operation had helped keep prices in check, telling reporters at the White House that crude would otherwise be "at $250" instead of "$85-$90 a barrel" . His remarks followed a Truth Social post in which he said Tehran would have to "pay the price" for allegedly dragging out negotiations for a peace deal.
Prices were also supported by data from the U.S. Energy Information Administration which showed U.S. crude stocks fell sharply last week as refiners scrambled to fill supply gaps caused by the war.
U.S. crude inventories fell by 7.2 million barrels in the week ended June 5, the agency said, a far bigger draw than the 4 million barrels expected by analysts in a Reuters poll.
The data showed inventories in the U.S. Strategic Petroleum Reserve at their lowest levels since August 2023. Separately on Wednesday, the U.S. Department of Energy said it is seeking to loan energy companies up to 40 million barrels of crude oil from the Strategic Petroleum Reserve to help push fuel prices down.
The U.S. military struck Iranian targets after Trump vowed on Tuesday to respond to the downing of a U.S. Apache attack helicopter. The U.S. military also carried out a "precision" strike on a vessel in the Gulf of Oman on Wednesday that failed to follow its instructions and was carrying oil from Iran, it said, while India said three of its seafarers were missing after the attack.
In what could further complicate talks, the U.N. nuclear watchdog's 35-nation Board of Governors passed a U.S.-backed resolution on Wednesday telling Iran to declare its remaining enriched uranium stocks and let inspectors verify them.
The limited flow of shipping through the Strait of Hormuz could also be capping prices, Varga said, as some ships transit the strategic waterway, but traffic remains significantly below pre-war levels. Iran has continued to block most shipping through the Strait, which normally carries a fifth of the world's crude oil and liquefied natural gas, while Washington has imposed its own blockade of Iranian ports.
The spike in energy prices caused U.S. consumer inflation to increase in May at the fastest pace in three years. Traders are betting the Federal Reserve will raise interest rates in December.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
