Middle East Tensions Drive WTI Crude Oil Prices to Multi-Month Highs

WTI crude oil prices have been on the rise in recent weeks, fueled by growing concerns over supply disruptions in the Middle East. The ongoing tensions in the region have led to a tightening of physical crude markets, with spot prices rising significantly. The price of dated Brent has reached $105.70 per barrel, while North Sea Forties is at $108.77.

The Middle East is home to two major straits that are crucial for global oil supply: the Strait of Hormuz and the Bab el-Mandeb Strait. Both of these waterways see significant volumes of oil pass through them, with the Strait of Hormuz accounting for 20% of the world's petroleum liquids consumption.

The Federal Reserve meeting is also expected to have a significant impact on energy markets next week. Despite expectations of a no-move from policymakers, market participants will be watching commentary regarding inflation and guidance for a September decision.