WTI Crude Oil Futures Spike Amid Escalating Tensions with Iran

WTI crude oil futures are trading at $91.80 Thursday night, up $8.36 or 10.02% for the week so far. The contract traded as low as $84.11 early in the week before reaching its strongest level since late July.

The market initially tested whether more cargoes moving through the Strait of Hormuz would take the war premium out of crude, but this selloff did not hold. Instead, tensions escalated with the United States and Iran exchanging their heaviest fire since July, and Iran tightening shipping restrictions.

Kuwait came under missile and drone fire, and Israel renewed threats against Iranian energy infrastructure. The WTI contract rallied because the barrels still moving are exposed to a supply route that can change with the next headline.