WTI Oil rallies above $99 as the Middle East war threatens to complicate further

WTI Oil prices surged above $99 on Thursday as tensions escalated in the Middle East, reigniting fears of supply disruptions. The US benchmark West Texas Intermediate (WTI) Oil rose about 1.9% for the day, trading above $99,000, amidst threats from Iran and speculation that Israel might join the conflict. The Iranian Islamic Revolutionary Guard Corps (IRGC) warned that Washington's insistence on vessels crossing the Strait of Hormuz might provoke attacks on US bases in the region.

The IRGC also claimed that four vessels involved in illegal oil transfers in the Persian Gulf were attacked by its forces, while three others struck sea mines while attempting to cross the Hormuz sea corridor. This comes following a drone attack by Yemeni Houthi militias, allies of Tehran, on Aramco's Shaybah Oilfield, resulting in two deaths and raising concerns about potential supply disruptions from Saudi Oil.

A report by The New York Times citing US officials suggests that the US and Israel may launch airstrikes on Iran after the mid-term elections to compel Tehran to negotiate concessions. Meanwhile, data from the US Energy Information Administration (EIA) revealed that commercial oil inventories fell by 3.1 million barrels in the week ending October 16, exceeding the 800,000-barrel drawdown forecasted by analysts. This further bolstered the bullish sentiment for WTI Oil.