WTI climbs above $95.50 as Iran says the Strait of Hormuz must remain closed

• WTI price rises to near $95.75 in Friday’s early Asian session. 

• Iran’s new supreme leader says the Strait of Hormuz must remain closed. 

• The IEA announced a historic release of 400 million barrels from strategic reserves to mitigate the supply. 

 West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $95.75 during the early Asian trading hours on Friday. The WTI price surges due to the effective closure of the Strait of Hormuz amid conflict involving the United States (US), Israel, and Iran.

US crude oil prices have risen more than 40% since the start of the war. The International Energy Agency (IEA) warned that the US-Israeli war on Iran was "creating the largest supply disruption in the history of the global oil market."

Iran’s new supreme leader, Mojtaba Khamenei, said in his first public statement since being appointed that the closure of the Strait of Hormuz maritime passage should be continued as a “tool to pressure the enemy.”  Khamenei further stated that all US military bases in the region should be immediately closed or will be attacked.  

On the other hand, a deal to release a record amount of reserves might cap the upside for the black gold. The IEA said on Wednesday that it will release a record 400 million barrels of oil in an attempt to curb the economic impact of the US-Israel war with Iran. The release of emergency oil reserves by countries coordinated through the IEA can add temporary supply to the market and prevent a sharp spike in oil prices.