WTI crude rose 3% to $90 per barrel and Brent gained 2.75% to $93.97 on June 10 as President Trump threatened further strikes on Iran, a seventh consecutive weekly US crude inventory draw surpassed expectations, and Hormuz traffic remained severely disrupted.

Key Highlights

  • WTI crude rose approximately 3% to around $90 per barrel on Wednesday, with Brent gaining 2.75% to near $93.97.
  • President Trump threatened further military strikes on Iran, warning Tehran would "pay the price" for delayed negotiations.
  • US forces struck Iranian targets on Tuesday in response to the downing of a US Army Apache helicopter.
  • EIA data showed US crude inventories fell 7.228 million barrels last week, a seventh consecutive weekly draw and nearly double the expected 4 million barrel decline.
  • The Strait of Hormuz remains severely disrupted under a dual blockade, though US Energy Secretary Wright noted vessel traffic is gradually rising.

Oil prices climbed sharply on Wednesday as President Donald Trump issued some of his most direct military threats toward Iran since the conflict began. Speaking in televised remarks, Trump stated that the United States had struck Iran the previous day and would do so again, describing Tehran's military capacity as largely destroyed following sustained engagement. Trump also posted on Truth Social that Iran had taken too long to negotiate and would face consequences, framing the situation as one where a deal remained available but time was running short.

WTI crude rose approximately 3% to around $90 per barrel following the remarks. Brent advanced more than 2% toward $93.97. US equity futures moved in the opposite direction, with the Dow Jones Industrial Average dropping more than 600 points after Trump's comments, reflecting a broader market reassessment of geopolitical risk.

The trigger for the latest escalation was a US Central Command announcement that American forces had launched strikes against Iran in response to the downing of a US Army Apache helicopter. Iran had previously attacked several Gulf states, including Bahrain, Jordan, and Kuwait, in what Tehran characterised as retaliation for earlier US operations. The cycle of strikes and counter-strikes has materially raised the probability of a broader regional confrontation and pushed oil's risk premium to its highest level in weeks.

Hormuz: Structurally Blocked, Marginally Recovering

The Strait of Hormuz continues to operate well below normal capacity. Iran has blocked the majority of commercial shipping through the waterway, and the United States has imposed its own restrictions on Iranian ports, creating a dual-blockade structure that has effectively removed a substantial portion of Gulf crude and distillate exports from global markets.

Despite this, US Energy Secretary Chris Wright stated on Wednesday that vessel traffic in the Persian Gulf and oil exports through the Strait are gradually rising. The observation aligns with earlier analysis suggesting that some tankers are transiting with transponders disabled, meaning official traffic data may undercount the actual flow of hydrocarbons through the chokepoint. The hidden volume partially explains why prices, while elevated, have not yet reached the extreme levels that a complete closure would theoretically imply.

The structural disruption nonetheless remains severe. Any further military escalation involving Hormuz infrastructure or additional tanker attacks would rapidly remove whatever residual flow currently exists and send prices materially higher.

Inventory Data Tightens the Fundamental Picture

Separately from the geopolitical developments, the underlying supply picture tightened further on Wednesday. EIA data showed US crude inventories declined by 7.228 million barrels during the most recent reporting week, nearly double the 4 million barrel draw that analysts had expected. The decline marked the seventh consecutive weekly drawdown, a sustained run of inventory erosion that points to a supply-demand imbalance that exists independent of the Middle East conflict.

Consecutive draws of this magnitude compress the buffer that has allowed the market to absorb the Hormuz disruption without a more severe price spike. Each successive week of above-average draws brings the stockpile level closer to the threshold where supply tightness becomes acute rather than manageable. If the current pace of inventory decline continues through the summer demand peak, the market will have limited cushion remaining to offset any further supply shocks.

Conclusion

Oil's 3% advance on Wednesday reflected a convergence of escalating military threats from Washington, a direct strike on Iranian targets, and a seventh consecutive weekly inventory drawdown that nearly doubled expectations. WTI settled near $90 per barrel and Brent approached $93.97. The Hormuz blockade remains structurally intact despite incremental signs of recovering vessel traffic. With Trump's rhetoric hardening and the physical supply picture tightening week by week, the near-term price trajectory is tilted upward unless a diplomatic breakthrough materialises.