United States Oil Fund Climbs 17% as Crude Prices Surge Over 30%
The militarization of the Strait of Hormuz threatens a 20 million barrel-per-day shortfall, which Iranian officials warn surpasses deficits from the 1973 Arab Oil Embargo. As crude prices spiked over 30% this week, the United States Oil Fund rose 1.47%, posting a 17.36% gain in five sessions.
1. Historic Oil Shortfall Warning
Iran’s Foreign Minister flagged a potential 20 million barrel-per-day deficit due to the Strait of Hormuz blockade, claiming it exceeds the combined shortfall from the 1973 Arab Oil Embargo, the Islamic Revolution, and the Kuwait invasion.
2. Crude Price Explosion
Heightened military tensions around the Strait have fueled a more than 30% jump in global crude, with WTI futures briefly topping $120 a barrel before settling near current levels around $84.
3. USO’s Strong Rally
The United States Oil Fund LP, which tracks WTI futures, climbed 1.47% in the latest session and has rallied 17.36% over the past five trading days, reflecting investor bets on prolonged supply constraints.