WTI Oil Price Hikes Amid Escalating Tensions with Iran
The price of WTI Oil has risen as tensions between the US and Iran continue to escalate. Following reports of a fresh escalation, security risks around the Strait of Hormuz have increased, where shipping is heavily restricted due to the ongoing conflict. The situation has been further complicated by claims from Iran's Islamic Revolutionary Guard Corps (IRGC) that the Strait of Hormuz is blocked and under their control.
The Houthis' seizure of Yemen's port of Mocha on Thursday added to supply concerns, although a Houthi spokesperson described current operations as 'defensive' and stated that navigation and international trade through the two waterways remain safe. The latest Energy Information Administration (EIA) report showed US crude Oil inventories fell by 391,000 barrels, missing expectations for a 1.6 million-barrel decline.
OPEC's Short-Term Energy Outlook lowered its forecast for global Oil demand growth in 2026 to 380,000 barrels per day from 580,000 bpd but raised its 2027 growth estimate to 2.36 million bpd from 2.16 million bpd.