West Texas Intermediate (WTI), the benchmark US crude oil price, rebounded during the Asian session on Thursday, recovering much of the previous day's losses and reclaiming the $91.00 level after hitting its lowest point since April 21 [1]. The recovery was driven by renewed geopolitical tensions in the Middle East, with Reuters reporting fresh US strikes overnight on an Iranian military site that was believed to threaten American forces and commercial maritime traffic in the Strait of Hormuz [1]. In response, Iran's Islamic Revolutionary Guard Corps (IRGC) stated it targeted a US airbase following an attack near Bandar Abbas airport and warned of a 'more decisive' response to any further US actions, according to Tasnimnews agency [1].
The ongoing conflict has kept the geopolitical risk premium elevated, supporting crude oil prices as buyers return to the market [1]. US President Donald Trump expressed dissatisfaction with the terms of a negotiated deal with Iran, stating he would not be rushed into an agreement, which dampened hopes for a diplomatic resolution to the three-month-old war [1]. Additionally, shipping traffic through the Strait of Hormuz remains restricted due to Iranian limitations and a US naval blockade of Iranian ports [1].
Further supporting WTI prices, data from the American Petroleum Institute indicated that US crude stockpiles fell for the sixth consecutive week [1]. However, the article notes that a strong US Dollar could limit further gains in oil prices, as it typically undermines demand for USD-denominated commodities like crude oil [1]. Market participants are now awaiting the release of the US Personal Consumption Expenditures (PCE) Price Index and the preliminary US Q1 GDP report for additional direction later in the North American session [1].
CONCLUSION
WTI oil prices have rebounded above $91, driven by escalating US-Iran tensions and ongoing supply disruptions in the Strait of Hormuz. The market remains sensitive to geopolitical developments and upcoming US economic data, with the near-term outlook tilted in favor of bullish traders.