Iran Tensions Send WTI Crude Soaring Nearly 4% Amid Strait of Hormuz Supply Fears
The West Texas Intermediate (WTI) crude oil contract has rebounded nearly 4% to trade in the mid-$81.00s, breaking a three-day decline that saw prices hit a two-week low.
The increase comes as tensions between the US and Iran escalate, with multiple ballistic missiles fired by Iran's Islamic Revolutionary Guard Corps (IRGC) at US forces in the region on Tuesday.
US President Donald Trump has warned of potential military operations if negotiations with Iran fail, stating that the US would target key Iranian infrastructure, including bridges and power plants.
The joint strikes between the US and Saudi Arabian forces against Iran-aligned militants in Iraq have further intensified the standoff around the Strait of Hormuz, leading to a larger geopolitical risk premium being added to oil prices.