20.03.202620:20:50UTC+00Crude Oil Extends Upward Momentum

WTI crude oil futures climbed toward $98 per barrel as investors reacted to escalating conflict in the Middle East and the growing likelihood of real supply disruptions. Markets are now pricing in actual production losses after Iraq declared force majeure across all its oilfields and drone strikes targeted refineries in Kuwait.

At the same time, President Donald Trump rejected a ceasefire with Iran and voiced confidence that the Strait of Hormuz would “open itself,” even as the Pentagon deployed thousands of additional Marines and considered plans to seize Iran’s Kharg Island oil terminal. Geopolitical risk premiums widened on the back of the Kuwaiti refinery attacks and reports of extensive preparations for potential ground operations.

Investors are increasingly abandoning expectations of a swift diplomatic solution and instead positioning for a prolonged disruption to global energy flows. Risk premiums continued to expand despite the International Energy Agency’s release of 400 million barrels from strategic reserves, as a sharp drop in tanker traffic overshadowed these emergency measures. Additionally, US crude inventories at Cushing rose to 27.52 million barrels.