Oil prices surged Wednesday as traders grappled with conflicting messages from the Trump administration about shipping through the Strait of Hormuz. West Texas Intermediate rose as much as 6.2% to $88.59 a barrel after plunging 12% the previous day, with dramatic swings whipsawing the market amid the escalating Middle East conflict.

Energy Secretary Chris Wright's erroneous post about US Navy escorting tankers through Hormuz, later deleted, added to the confusion. The Strait of Hormuz typically handles a fifth of global oil flows, and its effective shutdown has forced major producers to cut output. Tanker traffic has dwindled to a trickle, with traders anxiously watching for a resumption of normal trade.

The conflict has drawn more than a dozen countries into the fray and sparked concerns about an inflation crisis. Saudi Arabia, Iraq, the UAE and Kuwait have collectively reduced output by as much as 6.7 million barrels a day, or 6% of global production. The UAE's largest oil refinery halted operations following a drone strike, further tightening supply.