The EIA report presents a sharp contrast to industry estimates, as the American Petroleum Institute had anticipated a draw of 399,000 barrels just one day prior. Despite the build, current stocks remain 6% below the five-year average for this period. The market reaction was dominated by geopolitical instability following President Donald Trump’s declaration that a ceasefire with Iran had collapsed after tanker attacks in the Strait of Hormuz.

Energy prices surged on the news, with Brent futures climbing $3.21 to reach $77.37 per barrel by mid-morning in New York. West Texas Intermediate followed a similar trajectory, rising $2.97 to trade at $73.41. Meanwhile, domestic fuel inventories tightened; motor gasoline stocks fell by 1.9 million barrels, and middle distillates dropped by 5.0 million barrels, leaving the latter 12% below their five-year seasonal average. Despite these supply fluctuations, total product supplied—a key indicator of demand—remains resilient, averaging 20.6 million barrels per day over the past four weeks.