Middle East Tensions Keep WTI Crude Oil Near $77.50

West Texas Intermediate (WTI) crude oil has been trading near $77.50 per barrel, buoyed by escalating tensions in the Middle East that threaten key oil supply routes.

The region accounts for roughly one-third of global oil production and holds critical chokepoints, including the Strait of Hormuz, through which about 20 million barrels per day pass, around 20% of global consumption.

Analysts note that even the perception of a supply disruption can trigger risk premiums in crude prices. As a result, the market is pricing in a higher likelihood of supply interruptions, helping WTI hold above $77 despite broader economic headwinds such as elevated interest rates and slower manufacturing activity in key consuming regions.