Crude oil futures are rising today: Here we decode why
What's the story
Crude oil futures rose sharply today after the US announced a blockade on all maritime traffic to and from Iranian ports. The move comes after failed peace talks between Iran and the US. At the time of writing, June Brent oil futures were trading at $102.38, up by 7.54%, while May crude oil futures on West Texas Intermediate (WTI) were at $105.08, down by 8.81%.
Blockade
Details of the US maritime blockade
The US Central Command announced via a post on X that its forces would start enforcing the blockade from today at 10:00am ET (7:30pm IST). The blockade will be applied equally against vessels of all the nations entering or leaving Iranian ports and coastal areas, including those on the Persian Gulf and Gulf of Oman. However, CENTCOM forces won't interfere with freedom of navigation for vessels transiting via the Strait of Hormuz to non-Iranian ports.
Presidential remarks
Trump slams Iran for not opening Strait of Hormuz
US President Donald Trump took to social media platform Truth Social, criticizing Iran for not opening the Strait of Hormuz as promised. He said this has caused anxiety and pain across the world. Despite their navy being destroyed, they allegedly placed mines in the water, Trump claimed. He urged Iran to start opening this international waterway quickly and warned against further violations of international laws.
Recovery efforts
Saudi Arabia restores full oil pumping capacity
Meanwhile, Saudi Arabia's Ministry of Energy has announced that it has restored full oil pumping capacity through the East-West pipeline to some seven million barrels per day. The recovery was done in a short time and affected volumes from Manifa field production of about 300,000 barrels per day. The Kingdom is still working to restore full production capacity of the Khurais field.