WTI Oil hits highs near $91 as risks of an all-out war in the Middle East grow

Crude oil prices climbed towards $91.00 per barrel on Thursday, as tensions escalated between the United States and Iran. The US benchmark West Texas Intermediate (WTI) hit almost $91.00, marking a near 10% increase this week. This surge in prices comes as fears of a full-scale war in the Middle East grow. US President Donald Trump warned Iran against retaliation, claiming the US could strike Iran "at a much harder and higher level".

These remarks, however, have not eased tensions, as Iran accused US forces of targeting a civilian wedding, killing four and injuring dozens. Despite the US Energy Secretary's claims of record oil traffic through the Strait of Hormuz, ship tracking data suggests only five ships crossed the waterway on Monday, a 50% drop from 10 days prior.

The depletion of commercial Crude Oil stocks further fueled price increases, with commercial stocks dropping by 4.45 million barrels in the last week of August. WTI Oil, sourced in the United States and traded as a benchmark globally, is influenced by factors like supply and demand, OPEC's decisions, and the US Dollar's value. As political instability and wars in the region continue to disrupt supply, the situation remains tense, impacting oil prices worldwide.