WTI blasts past $100 as Red Sea, Hormuz risks collide
West Texas Intermediate (WTI), the US crude Oil benchmark, rises more than 7% as attacks in the Middle East intensify, driving WTI above the $ 100-per-barrel barrier for the first time since May 2026. At the time of writing, WTI trades at $103.86 after bouncing off lows of $95.37.
West Texas Intermediate (WTI) crude oil prices surged past the $100-per-barrel mark for the first time since May 2026, following intensified attacks in the Middle East, which threaten supply disruptions. At the time of reporting, WTI was trading at $103.86 after recovering from lows of $95.37. The conflict's escalation keeps crude prices supported due to fears of potential shortages.
Yemen's Houthi rebels, allied with Iran, reported nearing control of the Bab al-Mandab Strait, causing Red Sea traffic congestion and pressure on Saudi Arabia. Meanwhile, Hormuz remains restricted, with Iran reportedly increasing ballistic missile production. US President Donald Trump suggested a possible attack on Iran's Natanz uranium enrichment facility post-November elections.
China's increased crude imports, as domestic stocks dwindle, may further bolster Oil prices. US crude inventories fell by 391,000 barrels to 424.1 million barrels last week, with refining activity showing strength. WTI, a high-quality US crude sold on international markets, primarily sourced from Cushing, Oklahoma, serves as a benchmark for the Oil market.
WTI prices are influenced by global supply and demand, political instability, wars, sanctions, OPEC decisions, and the US Dollar's value.
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