Market Reaction

On Wednesday, oil prices surged after President Donald Trump expressed impatience with Iran’s delay in signing a peace deal and announced that the United States would "hit them hard" for a second consecutive day. At 14:51 ET (18:51 GMT), Brent crude futures for August rose 2.1% to $93.33 a barrel, while U.S. West Texas Intermediate (WTI) futures for July climbed 2.4% to $90.27 a barrel.

Trump’s Iran Rhetoric and Secret Hormuz Mission

President Trump reiterated his threat to Iran, stating that Tehran had taken too long to negotiate a peace deal and would "pay the price." He claimed that a joint U.S.–Israeli campaign had largely eradicated Iran’s military capabilities. In a separate statement, Trump disclosed a "secret mission" in which the U.S. military assisted tankers and ships crossing the Strait of Hormuz without Iran’s knowledge. He said the effort resulted in more than 100 million barrels of oil reaching the open market and that over 200 commercial ships safely traversed the strait. Energy Secretary Chris Wright, testifying before Congress, said he was not aware of any such operation.

U.S. Inflation Data

The same day, the U.S. consumer price index (CPI) for May showed a sharp rise in annual headline inflation, driven largely by energy costs. Energy prices surged 23.5% year‑over‑year, the highest reading since August 2022, while gasoline prices jumped 40.5% year‑over‑year, the strongest increase since July 2022. Core CPI, which excludes food and energy, inched up on a year‑over‑year basis but fell slightly on a month‑over‑month basis, with core goods inflation slipping 0.1% month‑over‑month.

Crude Inventories and Strategic Petroleum Reserve

U.S. commercial crude oil inventories (excluding the Strategic Petroleum Reserve) fell by 7.2 million barrels in the week ending 5 June, far exceeding the consensus draw of 3 million barrels. Total commercial crude stocks now stand at 426.5 million barrels, roughly 5% below the five‑year average for this time of year. The draw reflects the United States tapping its ample inventories to offset the supply disruption caused by the closure of the Strait of Hormuz, while exports have reached record highs since the conflict began.

The Strategic Petroleum Reserve (SPR) also declined, with crude oil inventories falling to 349.2 million barrels, the lowest level since August 2023. This depletion underscores the U.S. reliance on the SPR to mitigate the oil price shock from the Iran‑related conflict.

Contributors

The article was contributed by Ayushman Ojha and Scott Kanowsky and published by Reuters on 10 June 2026, with an update on 11 June 2026.