Oil prices rose on Wednesday amid fears about prolonged shipping disruption through the strategically vital Strait of Hormuz. Brent crude futures briefly topped $115 per barrel, while WTI futures climbed above $103 per barrel.
Brent crude and WTI prices were rising Wednesday as investors assess developments in the Iran war and OPEC.
Oil fell in early trade on the UAE's plan to exit OPEC, which would allow the country to produce more oil than the cartel currently permits.
The United Arab Emirates announced Tuesday that it will leave OPEC effective May 1 – a shocking blow to the world's largest oil cartel that could help drive down gasoline prices.
A 25/25/25/25 portfolio is beating markets in 2026 (per Bank of America strategists), with commodities leading gains while bonds, cash and stocks add stability.
The decision by the United Arab Emirates on Tuesday to quit the Organization of Petroleum Exporting Countries is a sign the cartel is losing its grip on the ability to control the worldwide supply and price of oil.
Crude oil prices remain supported as restricted Strait of Hormuz flows, stalled U.S.-Iran talks, and tanker disruptions keep supply risks high and push Brent and WTI toward higher levels.
Oil prices edged higher Tuesday as investors parsed fresh signals from U.S.-Iran negotiations. Trump and his national security team had discussed a proposal from Tehran to reopen the Strait of Hormuz.
Oil futures have tried and failed multiple times to get back above $103 a barrel, as a key momentum indicator has been held back.
West Texas Intermediate crude oil remains a key barometer for economic activity and inflation, with recent price action and technical indicators pointing to slowing momentum and a cautious near-term outlook.
Wall Street heads into one of the most consequential weeks of the year with a full plate: a historic wave of corporate earnings, a pivotal Federal Reserve meeting, and an unresolved geopolitical standoff in the Middle East all arriving at once. Some 180 S&P 500 companies are scheduled to report this week, including five members of the Magnificent 7.
Oil prices rose again on Monday on stalled negotiations between the U.S. and Iran, aimed at bringing the conflict in the Middle East to an end.