WTI Oil extends gains as prolonged Hormuz closure reinforces supply shock
Di Ghiles Guezout
Aggiornato: 28 Apr 2026
ARTICOLI POPOLARI
West Texas Intermediate (WTI) US Oil trades around $98.00 on Tuesday at the time of writing, up 3.21% on the day, reaching its highest level since mid-April.
- WTI US Oil reaches a two-week high of around $98 amid persistent geopolitical tensions.
- Prolonged closure of the Strait of Hormuz continues to disrupt nearly 20% of global supply.
- Escalation risks fuel supply concerns and reinforce the market’s bullish bias.
West Texas Intermediate (WTI) US Oil trades around $98.00 on Tuesday at the time of writing, up 3.21% on the day, reaching its highest level since mid-April. The rise in Crude prices comes amid heightened geopolitical tensions in the Middle East, where negotiations between the United States (US) and Iran remain deadlocked.
According to reports cited by Reuters, US President Donald Trump considers the peace proposal submitted by Tehran insufficient, particularly due to the lack of commitments regarding Iran’s nuclear program. This stance keeps the diplomatic stalemate in place and prolongs the closure of the Strait of Hormuz, a strategic route for around 20% of global Oil supply.
This major supply disruption is mechanically supporting Oil prices, bringing WTI closer to the psychological $100 level. At the same time, Brent is also advancing, reflecting broad-based tightness across energy markets.
Concerns extend beyond the Oil market alone. United Nations (UN) Secretary-General Antonio Guterres has warned of a potential global food crisis if the situation persists, highlighting the systemic consequences of a prolonged closure of the strait.
In this context, some market participants expect further upside in prices if disruptions continue. Citibank outlines a scenario in which Brent Oil could reach $150 per barrel should the Strait of Hormuz remain closed through the end of June.
WTI Oil FAQs
WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.
Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.
The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.
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