WTI crude oil futures rose over 3% on May 15. Prices exceeded $104 per barrel as the commodity headed for a significant weekly gain.
The Strait of Hormuz remains effectively closed, fueling global supply concerns. This disruption has removed nearly one-fifth of the world's daily seaborne crude supply.
U.S. President Trump and Chinese President Xi Jinping concluded a high-stakes summit without resolving the Middle East conflict. Ongoing tanker attacks in the waterway maintain a high-risk premium on crude oil.
The International Energy Agency reports that markets could remain severely undersupplied for months, even if a resolution is found. Tightening inventories are amplifying concerns regarding persistent global inflation.
Energy stocks rallied on higher commodity prices, outperforming an otherwise declining equity market. President Trump issued mixed messages regarding the strategic importance of the strait, increasing market volatility.