Open account

WLDOIL Holds $105-$106 Highs as US Treasury Enforces Hormuz Blockade After Trump Rejection

WLDOIL traded $105.88-$106.30/bbl on May 1 near four-year highs of $110.93 as the US Treasury enforced a Strait of Hormuz blockade until navigation restores to pre-February 27 standards, following Trump's rejection of Iran's proposal which triggered an intraday pullback. Prices plunged below $95/bbl in early April on de-escalation hopes but surged back amid Hormuz disruptions curbing 13-14.5M bpd supply, UAE's OPEC exit effective May 1, and EIA's -6.2M bbl crude draw to 459.5M bbl inventories. Israeli reports of imminent US strikes, Danske Bank's $5-10/bbl risk premium, and 11% weekly gain underscore sustained supply shock risks.

Category

UK Brent Oil

Sentiment

Bullish

Event

Price movement

Reading time

1 min