West Texas Intermediate crude rose to $90.78 per barrel on Thursday as U.S. President Donald Trump threatened to strike Iran again, with the Strait of Hormuz declared fully closed and a second consecutive day of U.S. military strikes deepening the energy supply shock.

Key Highlights

  • WTI at $90.78: Front-month WTI crude rose $0.75 to $90.78 per barrel; Brent climbed $0.41 to $93.51.
  • Trump threatens seizure: The U.S. President warned the U.S. would strike Iran "VERY HARD TONIGHT" and eventually seize Kharg Island and assume total control of Iran's oil and gas markets.
  • Hormuz fully closed: Iran's IRGC declared a complete closure of the Strait of Hormuz to all commercial vessels, warning any ship attempting transit would come under fire.
  • Inventory draw: U.S. crude stocks fell 7.2 million barrels to 426.5 million barrels in the week ended June 5, well above the projected 4-million-barrel draw per the EIA.
  • OPEC cuts forecast: OPEC trimmed its 2026 global oil demand growth forecast to 1.0 million barrels per day from 1.2 million in its prior monthly report.

Oil prices rose on Thursday as U.S. President Donald Trump renewed threats against Iran following a second consecutive day of U.S. military strikes. Trump warned on Truth Social that the United States would strike Iran "VERY HARD TONIGHT," citing Tehran's alleged stalling of interim peace deal negotiations. He also stated the U.S. would, "at some point in the not too distant future," seize Kharg Island, Iran's primary crude export hub handling roughly 90% of its oil exports, drawing a parallel to U.S. action in Venezuela.

The escalation followed Iran shooting down a U.S. Apache helicopter, which prompted U.S. Central Command to launch self-defense strikes on Iranian communication systems, air defense sites, and surveillance infrastructure. Iran retaliated by firing ballistic missiles at U.S. bases in Kuwait, Bahrain, and Jordan for a second successive day, and its IRGC declared the Strait of Hormuz completely closed to commercial shipping. The waterway carries approximately 20% of global oil supply, and its disruption has constituted the largest energy supply shock on record since hostilities began in late February 2026.

Iran's Foreign Ministry condemned the U.S. strikes as rendering the existing ceasefire framework "practically meaningless." Trump separately told reporters that U.S. forces had conducted a covert operation escorting more than 100 million barrels of oil through the strait, crediting the effort with preventing a sharper price spike.

On the supply side, the EIA reported a draw of 7.2 million barrels from U.S. crude inventories in the week ended June 5, dragging the Strategic Petroleum Reserve to its lowest level since August 2023. The U.S. Department of Energy announced plans to loan energy companies up to 40 million barrels from the reserve.

OPEC's June monthly report cut its 2026 demand growth forecast to 1.0 million barrels per day from 1.2 million, citing geopolitical and trade headwinds.