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WTI jumps after Middle East shipping risks tighten oil routes
September WTI rose to $92.31 late Thursday, after climbing from a $79.58 weekly low, as traders priced fewer export routes, higher freight costs, and tighter fuel markets amid the U.S.-Iran conflict.
September WTI crude oil futures rose sharply to $92.31 late Thursday, up $10.54 or 12.89% for the week, after trading between a weekly low of $79.58 and a weekly high of $92.31, according to OilPrice.
The move reflected more than a typical risk-premium increase. The market began the week with the Strait of Hormuz already impaired and accelerated its repricing after it judged that Saudi Arabia’s alternate export route through the Red Sea was also under threat, resulting in fewer ways to move barrels, higher freight costs, tighter fuel markets, and no clear path to a ceasefire.
OilPrice also pointed to intensifying U.S.-Iran conflict dynamics affecting shipping through Hormuz. It cited Iran’s claim that the strait was under its control, alongside continued U.S. military action, including U.S. strikes completing a twelfth straight night by Thursday.
The outlet added that a tanker fire near Oman heightened concerns. OilPrice said Iran described the vessel as trying to follow a mined route in southern Hormuz, while additional incidents around regional shipping contributed to the risk outlook.
Latest closeWTI crude $92.23 ▲6.2%