International oil prices closed up nearly US$2 on Wednesday (10th)

International oil prices closed up nearly $2 on Wednesday (10th). (Bloomberg)

[Financial Channel/Comprehensive Report] International oil prices closed up nearly $2 on Wednesday (10th) after US President Donald Trump said that the United States would attack Iran "very violently" if the peace agreement was not finalized.

Brent crude oil futures closed at $93.10 a barrel, up $1.65, or 1.8%.

U.S. West Texas Intermediate (WTI) crude oil futures in New York closed at $90.03 a barrel, up $1.83, or 2%.

The night before, one of the most serious fighting incidents between the United States and Iran since the April ceasefire agreement broke out. After Trump reiterated that the United States would attack Iran again, the two major crude oil futures contracts surged by about $3 in afternoon trading.

However, oil prices pared gains near the close after Trump said the U.S. military had secretly escorted ships carrying more than 100 million barrels of oil through the Strait of Hormuz.

Global daily oil consumption is approximately 100 million barrels. Trump suggested the action would help curb rising oil prices. He told reporters at the White House that if this were not the case, crude oil prices would have reached "$250 per barrel" instead of the current "$85 to $90 per barrel."

Prior to this, Trump posted on Truth Social that Tehran must "pay a price" for allegedly delaying peace agreement negotiations.

"Oil prices have swung back and forth between nervousness and coolness amid renewed conflict between the United States and Iran, and now are back on edge again," said Phil Flynn, senior analyst at Price Futures Group.

Oil prices were also supported by data from the U.S. Energy Information Administration (EIA). Data showed U.S. crude inventories fell sharply last week as refiners rushed to fill the supply gap caused by the war.

The EIA said U.S. crude oil inventories fell by 7.2 million barrels in the week to June 5, much higher than the 4 million barrel drop originally expected by analysts polled by Reuters.

Data also showed that inventories in the U.S. Strategic Petroleum Reserve fell to their lowest level since August 2023. Separately, the U.S. Department of Energy said on Wednesday it was seeking to lend up to 40 million barrels of crude oil from the Strategic Petroleum Reserve to energy companies to help keep fuel prices down.

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