WTI Surges Past $73.50 on Trump’s Iran Warning and Crude Inventory Drop

WTI Jumps Above $73.50 as Geopolitical Risks and Supply Data Fuel Rally

West Texas Intermediate (WTI) crude oil continued its upward momentum, rising to $73.55 in Wednesday’s early Asian trading. The surge comes amid rising geopolitical risk in the Middle East and significantly lower-than-expected US crude inventories, both contributing to upward price pressure.

Trump Demands Iran’s “Unconditional Surrender”

Market sentiment turned bullish after former US President Donald Trump demanded the unconditional surrender of Iran’s Supreme Leader in a fiery social media post. His statement stoked fears of direct US military involvement in the escalating Israel-Iran conflict, prompting traders to price in supply risk premiums.

The risk of a broader regional war is pushing energy traders to hedge against potential disruptions, especially as Iran—one of the world's top oil producers—may retaliate by threatening oil flows through the Strait of Hormuz, a key global shipping chokepoint.

API Data Shows Sharp Decline in US Crude Inventories

Adding to the bullish tone, the American Petroleum Institute (API) reported a massive drop of 10.133 million barrels in US crude inventories for the week ending June 13. This was far steeper than the expected 600,000-barrel decline and marks a significant acceleration from the previous week’s 370,000-barrel drop.

Despite the recent drawdown, year-to-date oil inventories remain 7.6 million barrels higher, based on API data, suggesting underlying volatility as the market reacts to supply-side shocks.

WTI Outlook: More Upside Possible if Tensions Escalate

With rising geopolitical risks and tightening US supply, WTI may continue climbing if tensions in the Middle East worsen or if Iran follows through on threats to disrupt exports. Traders will also monitor upcoming EIA official inventory data and any further geopolitical developments.

Suggested Internal Links (Tredu.com):

• How Geopolitical Events Impact Oil Prices
• Understanding WTI Crude Oil
• What Is the API Crude Oil Inventory Report?
• Middle East Conflicts and Global Energy Markets