WTI crude oil futures rose over 3% on May 15. Prices exceeded $104 per barrel as the Strait of Hormuz remained effectively closed. A high-stakes summit between U.S. President Trump and Chinese President Xi Jinping concluded without a resolution to the Middle East conflict.
The closure has removed nearly 20% of daily global seaborne crude supply. The International Energy Agency warned that markets could remain severely undersupplied for months. Tightening inventories are increasing concerns regarding persistent global inflation.
Energy stocks rallied on higher commodity prices while the broader equity market declined. Ongoing tanker attacks and the physical closure maintained a high-risk premium for crude oil. President Trump issued mixed messages regarding the strategic importance of the waterway.