Oil rises by more than 3%, closes above $101

Oil drilling rigs

Oil prices rose at the close of trading today, April 22, supported by a decline in US fuel inventories and escalating military tensions in the Strait of Hormuz.

Brent crude futures for June delivery jumped 3.48%, or $3.43, to $101.91 a barrel, after reaching $102.31 earlier in the session.

US West Texas Intermediate (WTI) crude futures for June delivery rose 3.67%, or $3.29, to $92.96 a barrel.

This followed reports from the UK Maritime Trade Operations (UKMTO) that two cargo ships were fired upon in the Strait of Hormuz, with reports indicating a third vessel was also targeted, in addition to Iran seizing two other ships.

Iran emphasized that the continued US blockade of its ports violated the ceasefire that President Donald Trump had decided to extend indefinitely.

Oil prices received additional support from a 4.6 million barrel drop in US gasoline inventories last week and a 3.4 million barrel decline in distillate inventories, despite a 1.9 million barrel increase in crude oil inventories, contrary to expectations.