Oil futures surged as tensions in the Persian Gulf escalated, with Iran blocking ships from transiting the Strait of Hormuz. Three commercial vessels were reportedly hit near the strategic waterway, prompting the International Energy Agency to announce a record 400 million barrel release from emergency reserves. The IEA acknowledged that reopening the strait remains crucial for resolving supply disruptions.

WTI crude settled 4.6% higher at $87.25 a barrel while Brent rose 4.8% to $91.98. Analysts noted that despite the emergency reserve release, prices will remain volatile until ships can transit the strait freely. Pepperstone's Michael Brown emphasized the lack of progress in de-escalation efforts, while BOK Financial's Dennis Kissler warned that another price rally is likely if the strait remains closed.

Meanwhile, Rivian Automotive shares slipped 1.5% ahead of its R2 SUV debut, with analysts suggesting the initial price will likely exceed the $45,000 target. Benchmark's Mickey Legg noted that Rivian is emphasizing configuration simplicity and controlled production ramp-up to accelerate quality and reduce complexity ahead of its first mass-market product launch.