WTI Holds Losses Near $95.00 As Australia Releases Fuel Reserves
- WTI falls after Australia’s Energy Minister Chris Bowen announced plans to release 762 million litres of fuel from reserves.
- Oil prices may further rise due to the Strait of Hormuz closure amid escalating US-Israel-Iran tensions.
- Mojtaba Khamenei said the Strait of Hormuz closure should continue as a “tool to pressure the enemy.”
West Texas Intermediate (WTI) oil price holds slight losses after surging more than 9% in the previous session, trading near $95.20 per barrel during the Asian hours on Friday. Oil prices declined after Chris Bowen, Australia’s Energy Minister, said the country would release up to 762 million litres of fuel from reserves after easing stockholding rules to address supply disruptions linked to the Iran conflict.
The Australian government also plans to reduce minimum fuel stockholding requirements by up to 20% to help stabilize domestic supply. Despite this measure, Oil prices may continue rising following the effective closure of the Strait of Hormuz amid escalating tensions involving the United States, Israel, and Iran.
US crude prices have surged more than 40% since the start of the war. The International Energy Agency (IEA) warned that the US-Israeli war on Iran is “creating the largest supply disruption in the history of the global oil market.”
Officials at the United States Department of Defense and the National Security Council reportedly underestimated Iran’s readiness to close the Strait of Hormuz in response to US military strikes while planning the ongoing operation. The Strait handles roughly one-fifth of global Oil consumption, making it one of the world’s most strategically important maritime routes. Any disruption to tanker traffic can quickly ripple through global energy markets.
Iran’s new supreme leader, Mojtaba Khamenei, said in his first public remarks since taking office that the closure of the Strait of Hormuz should remain a “tool to pressure the enemy.” Khamenei also warned that all US military bases in the region should be closed immediately or face potential attacks.
