E-mini crude oil futures climbed 2.6% in pre-market trading to $86.55 on Thursday, driven by mounting supply risks in the Strait of Hormuz and tightening product markets.
The surge follows renewed disruptions in the Gulf, where Iranian forces have intensified attacks on vessels transiting the Strait of Hormuz over the past week. Multiple tankers linked to the UAE and Saudi Arabia have been struck, while U.S. President Trump confirmed that no negotiations with Tehran are underway and that the U.S. naval blockade remains in effect. The Strait, a critical chokepoint for global oil shipments, has effectively shut to normal commercial traffic amid the unresolved conflict.
Market tightness was further underscored by record-high diesel and distillate crack spreads, signaling strong demand for crude feedstock. U.S. crude inventories posted a draw of 328,000 barrels in the latest industry data, reversing a large build from the prior week. The Energy Information Administration’s latest Short-Term Energy Outlook projects global oil inventories will continue declining through Q3 2026, reinforcing a structurally tight supply outlook.
The broader U.S. equity market showed little movement, with the S&P 500 flat, the Dow Jones marginally lower, and the NASDAQ nearly unchanged. Traders also monitored the Federal Reserve’s July FOMC meeting minutes for signals on monetary policy, which could influence the dollar and dollar-denominated commodity prices.
