Oil rally gathers pace on blockade extension reports, US dollar firms.

Brent rose for an eighth day to above $111 and WTI topped $100 on reports Trump will extend the Iran port blockade. The dollar firmed. Earlier, US crude inventories dropped for a second weekSummary:Brent crude rose for an eighth consecutive day, gaining above $111.75 a barrel, with the more active July contract at $104.84WTI climbed for seven of the last eight sessions, rising to $100.50 after a gain in the prior sessionThe Wall Street Journal reported late Tuesday that Trump has instructed aides to prepare for an extended blockade of Iranian ports, prolonging supply disruptions from the Middle EastThe Strait of Hormuz, a conduit for roughly 20% of global oil and LNG supplies, remains shut as Iran blocks shipping flows and the US blockades Iranian portsAPI data showed US crude inventories fell 1.79 million barrels for the week ended 24 April, with gasoline stocks down 8.47 million barrels and distillates down 2.60 million barrels, a second consecutive weekly decline across the boardDiplomatic negotiations remain deadlocked, with Iran seeking reparations, sanctions relief and some form of control over the Strait, while Washington demands an end to Tehran’s nuclear programmeThe US dollar firmed Oil extended its multi-day rally on Wednesday after reports confirmed that President Trump is preparing to prolong the blockade of Iranian ports, a move that markets interpreted as signalling a further tightening of Middle East supply at an already stretched moment for global crude inventories.Brent futures climbed for an eighth consecutive session, rising to $111.75 a barrel in early Asian trade, with the more actively traded July contract at $104.84. WTI gained to reach $100.50 a barrel. The $100 level for WTI carries psychological weight, and its breach is likely to draw additional momentum from algorithmic and trend-following strategies.The catalyst was a Wall Street Journal report, citing US officials, that Trump has instructed his team to prepare for an extended blockade of Iranian ports rather than resuming bombing or accepting Tehran’s current diplomatic offer. The Strait of Hormuz, through which approximately 20% of global oil and LNG supplies normally flow, remains shut, with Iran blocking commercial shipping and the US enforcing its own blockade on Iranian port access.Inventory data added fundamental support to the geopolitical premium already embedded in prices. API figures released late Tuesday showed US crude stocks fell by 1.79 million barrels in the week to 24 April, the second consecutive weekly decline. Gasoline inventories dropped by 8.47 million barrels and distillates by 2.60 million barrels, confirming that the Hormuz disruption is translating into real physical tightness rather than sentiment alone.Diplomatically, the two sides remain far apart. Iran is seeking reparations, an easing of sanctions and a degree of control over the Strait of Hormuz, while Washington insists any deal must address Tehran’s nuclear programme. With talks stalled and neither side showing signs of movement, the supply disruption appears set to persist.Elsewhere in markets, the US dollar firmed on the session.—- The combination of an extended US blockade, a shuttered Strait of Hormuz and two consecutive weeks of falling US inventories presents a firmly bullish backdrop for crude. Brent pushing above $111 and WTI clearing $100 are psychologically significant levels that may attract further momentum buying. The inventory data, showing crude stocks down 1.79 million barrels, gasoline down 8.47 million and distillates down 2.60 million, confirms that the Hormuz disruption is drawing on physical supply rather than simply generating paper market volatility. A firmer dollar typically acts as a headwind for dollar-denominated commodities, but oil’s geopolitical premium is clearly overwhelming that drag for now. If the blockade is formally extended and no diplomatic breakthrough emerges, the upside in crude remains meaningful, though recession fears and demand destruction at sustained high prices represent the key counterweight.
This article was written by Eamonn Sheridan at investinglive.com.

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