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WTI climbs near $87.50 as Middle East supply routes face disruption
The rally is tied to escalating Middle East tensions after repeated strikes on Iran, plus concerns about shipping through the Strait of Hormuz and the Red Sea.
West Texas Intermediate crude was trading around $87.50 during early European hours on Thursday, rising to the highest level since June 11.
FXStreet attributed the move to heightened Middle East tensions after a 12th straight night of strikes on Iran, with major disruption building around two key supply routes.
FXStreet said the latest flare-up followed US President Donald Trump’s threat to target an Iranian bridge or power plant whenever Iran fires at a ship in the Strait of Hormuz. It also cited Iran’s Islamic Revolutionary Guard Corps warning that no tanker will enter or leave the waterway without coordination, and the Iran-backed Houthis in Yemen claiming an attack on two Saudi oil tankers in the Red Sea.
FXStreet added that analysts at Gelber & Associates said the increase is not necessarily linked to reduced production, but rather to the market expecting conditions to stay volatile through the week, especially if Red Sea shipping or Saudi oil exports to Asia are further disrupted. The piece also highlighted technical levels, including overhead resistance clustered between $88.10 and the 100-day SMA near $88.15, with a potential trigger for a move toward $90 if WTI closes above that zone.
Latest closeWTI crude $87.52 ▲3.1%