Oil prices add to two-month highs after U.S. destroys five Iranian oil tankers

US forces have targeted multiple Iranian oil tankers linked to the Islamic Revolutionary Guard Corps (IRGC) in response to attacks on a US warship, according to a report by Bloomberg on Tuesday. The attacks occurred in the Gulf of Oman and near Iran's Kharg Island, as confirmed by CENTCOM. The US forces instructed the tanker crews to abandon ship before launching their strikes.

IRGC has warned that ships in Kuwaiti and Bahraini ports hosting US forces could face retaliation. Iran's semi-official news agency, Mehr, reported explosions at Kharg Island, the country's primary oil export facility. Houthi militants, backed by Iran, claimed they targeted Saudi Arabia's Jazan refinery and domestic market facilities once again.

At the time of reporting, the West Texas Intermediate (WTI) crude oil price was up 0.13% at $92.35. WTI crude, a high-quality oil type, serves as an international benchmark and is considered "light" and "sweet" due to its low gravity and sulfur content. It is primarily sourced in the US and distributed via the Cushing hub. WTI price fluctuations are influenced by supply and demand, global growth, geopolitical instability, OPEC decisions, the US Dollar's value, and weekly Oil inventory reports.

OPEC, a group of 12 major oil-producing nations, decides production quotas at biannual meetings, impacting WTI oil prices. A reduction in quotas can tighten supply and raise prices, while an increase in production has the opposite effect.