19.06.2025 15:50

Iran's threat to close the Strait of Hormuz, reported by the Mehr news agency via Reuters, sent ripples through global oil markets. Parliamentarian Behnam Saeedi, a member of the National Security Committee presidium, stated that Iran possesses various options for responding to aggression, including the closure of this crucial waterway.

This announcement immediately triggered a surge in crude oil prices. At the time of writing, West Texas Intermediate (WTI) crude was trading near $74.50 per barrel, reflecting a robust 2% daily increase. Brent crude also experienced a similar upward trajectory, reaching approximately $78 per barrel, a 2% daily gain.

West Texas Intermediate, often shortened to WTI, is a significant grade of crude oil traded internationally. Characterized by its relatively low density ("light") and sulfur content ("sweet"), this high-quality crude oil is easily refined. Sourced primarily from the United States, it's distributed globally via the Cushing, Oklahoma hub, a critical pipeline nexus frequently referred to as "The Pipeline Crossroads of the World." As a benchmark for global oil pricing, WTI's value is consistently featured in financial news and market analyses.

Numerous factors influence the price of WTI, with supply and demand remaining the pivotal drivers. Strong global economic growth generally increases demand, while sluggish growth has the opposite effect. Geopolitical instability, conflicts, and international sanctions can disrupt supply chains and significantly impact prices. Furthermore, OPEC's decisions, as a collective of major oil-producing nations, exert considerable influence. The US dollar's value also plays a crucial role, as oil is primarily traded in this currency; a weaker dollar generally lowers oil prices, and conversely, a stronger dollar raises them. Finally, weekly oil inventory reports from the American Petroleum Institute (API) and the Energy Information Agency (EIA) provide further market-moving information.