Brent rose for an eighth day to above $111 and WTI topped $100 on reports Trump will extend the Iran port blockade. The dollar firmed. WTI gained to reach $100.50 a barrel. The $100 level for WTI carries psychological weight, and its breach is likely to draw additional momentum from algorithmic and trend-following strategies.
The catalyst was a Wall Street Journal report, citing US officials, that Trump has instructed his team to prepare for an extended blockade of Iranian ports rather than resuming bombing or accepting Tehran’s current diplomatic offer. The Strait of Hormuz, through which approximately 20% of global oil and LNG supplies normally flow, remains shut, with Iran blocking commercial shipping and the US enforcing its own blockade on Iranian port access.
Inventory data added fundamental support to the geopolitical premium already embedded in prices. API figures released late Tuesday showed US crude stocks fell by 1.79 million barrels in the week to 24 April, the second consecutive weekly decline. Gasoline inventories dropped by 8.47 million barrels and distillates by 2.60 million barrels, confirming that the Hormuz disruption is translating into real physical tightness rather than sentiment alone.
Diplomatically, the two sides remain far apart. Iran is seeking reparations, an easing of sanctions and a degree of control over the Strait of Hormuz, while Washington insists any deal must address Tehran’s nuclear programme. With talks stalled and neither side showing signs of movement, the supply disruption appears set to persist.
Elsewhere in markets, the US dollar firmed on the session.
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The combination of an extended US blockade, a shuttered Strait of Hormuz and two consecutive weeks of falling US inventories presents a firmly bullish backdrop for crude. Brent pushing above $111 and WTI clearing $100 are psychologically significant levels that may attract further momentum buying. A firmer dollar typically acts as a headwind for dollar-denominated commodities, but oil’s geopolitical premium is clearly overwhelming that drag for now
