Crude oil futures ended significantly higher on Wednesday as concerns over Middle East supply risks intensified. The rally came after reports indicated that Donald Trump is preparing for an extended blockade of Iranian ports. Further gains followed reports that the US had rejected Iran’s proposal to reopen the Strait of Hormuz, reinforcing expectations that supply disruptions may persist. Besides, the Energy Information Administration released a report showed US crude inventories fell by 6.233 million barrels to 459.5 million barrels in the week ended April 24, compared with expectations for a 0.2 million barrel draw.
Benchmark crude oil futures for June delivery jumped by $6.95 or 6.95% to settle at $106.88 a barrel on the New York Mercantile Exchange. Brent crude for June delivery surged by $6.77 or 6.08% to settle at $118.03 a barrel on London's Intercontinental Exchange.
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