WTI Oil Price Hits $88.60 as Middle East Tensions Escalate

The West Texas Intermediate (WTI) oil price has continued its upward trend, reaching $88.60 on Thursday. This marks the fifth consecutive trading day of gains for WTI futures on the New York Mercantile Exchange (NYMEX). The rally is largely due to ongoing tensions in the Middle East, which have disrupted global energy supply chains.

The Strait of Hormuz and Bab el-Mandeb Strait, two critical waterways, have been impacted by Iranian and Yemeni actions. This has resulted in a 27% reduction in global energy supply. Iran's Foreign Minister Abbas Araghchi warned that any US attack on Iranian infrastructure would be met with a 'powerful and decisive response.' The US President Donald Trump had previously stated that Washington's military would target Iranian infrastructure if necessary.

Investors are now focusing on key monetary policy announcements from central banks, including the European Central Bank (ECB), which is expected to keep interest rates unchanged. The ECB's decision will be closely watched as it may have implications for global energy markets.