Crude oil prices rose sharply on Thursday. West Texas Intermediate (WTI) futures climbed over 2%. Prices for the benchmark traded above $100 a barrel. Brent crude topped $106.
Iran’s Supreme Leader, Ayatollah Mojtaba Khamenei, ordered that the country’s enriched uranium not be exported. This directive is a significant roadblock to a potential U.S.-Iran peace deal.
A deal could have reopened the Strait of Hormuz. This channel handles an estimated one-fifth of global oil supply. Tehran’s hardened negotiating position renewed fears of a prolonged conflict.
Energy stocks rallied as investors anticipated higher revenues for oil producers. U.S. crude inventories fell more than expected. The Strategic Petroleum Reserve recorded a record drawdown, further tightening the supply outlook.