WTI Crude Prices Surge as US-Iran Tensions Reach Boiling Point
The price of WTI oil ticked higher on Monday, trading near $90.00 per barrel in Asian hours, as crude prices rose due to renewed military strikes between the US and Iran.
The US struck three Iranian oil tankers over the weekend in response to ballistic missile attacks on US Navy warships, leading Tehran to announce a new restricted zone beyond the Strait of Hormuz that extends into part of the Persian Gulf and includes the US Navy blockade line.
US Energy Secretary Chris Wright said the US military will maintain its naval presence in the area, focusing on enforcing the blockade on Iranian oil exports while protecting commercial shipping through the Strait.
The physical supply squeeze is a reality now, with traffic through Hormuz falling to a multi-month low of 10 vessels per day, according to Kpler tracking.