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WTI rises past $86 amid renewed Iran and Red Sea supply worries
WTI is up 26.0% so far in July, supported by concerns over potential disruptions along key shipping routes after reported vessel turnarounds in the Red Sea.
Oil prices extended their advance as geopolitical tensions raised fresh concerns about supply disruptions. FXStreet reports that hostilities in Iran could escalate further, while reports of ships turning around in the Red Sea intensified fears around flows tied to the Bab el-Mandeb Strait.
In the United States, WTI reached fresh six-week highs above $86. FXStreet said the rally followed continued US military actions targeting sites in Iran for an 11th consecutive day and threats by President Donald Trump that Tehran says would broaden the conflict if nuclear sites are attacked.
Reuters, cited by FXStreet, reported that three Saudi Arabian vessels turned around in the Red Sea after Yemen’s Iran-backed Houthi militias announced a blockade of the Bab el-Mandeb Strait. The outlet said the move is a key waterway for Saudi crude, which could heighten risks of broader shortages.
FXStreet added that Rabobank’s RaboResearch pointed to overlapping disruptions, including possible Hormuz-linked issues, intensified Russia-Ukraine strikes, CPC terminal outages, and record-tight diesel markets. It also noted that American Petroleum Institute data showed US crude stocks rose by 2.6 million barrels in the week of July 17, exceeding expectations for a 1.5 million-barrel decline, though any relief from the inventory print was short-lived.
Latest closeWTI crude $87.52 ▲3.1%