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WTI rises toward $79 as Strait of Hormuz supply fears grow
WTI is set for its biggest weekly gain since April after new US strikes against Iran raised concerns that oil flows through the Strait of Hormuz could be disrupted.
West Texas Intermediate traded around $79.00 in early European trading on Friday as Middle East tensions intensified, renewing worries about oil supply disruptions, FXStreet reported.
The update cited US military statements saying it launched another wave of strikes against Iran and boarded a vessel as part of its blockade efforts in the Strait of Hormuz. The Iranian Islamic Revolutionary Guards Corps said no oil or gas would be exported through the strait while the attacks continue.
FXStreet also pointed to reports of additional incidents in the region, including loud explosions reported in Kuwait and Basra, and Qatar’s defence ministry saying it intercepted a missile attack. The International Energy Agency’s Executive Director Fatih Birol warned that if US and Iran do not increase oil flows through the Strait of Hormuz soon, energy security should become a broader concern.
The article further noted that geopolitical instability can disrupt oil supply and influence prices, and that WTI is priced in US dollars, meaning currency moves can affect crude costs. It also referenced how weekly inventory reports from the API and EIA can impact WTI.
Latest closeWTI crude $79.00 ▼0.8%