WTI Oil Price Jumps Towards $90 Amid Middle East Energy Supply Risks

The price of West Texas Intermediate (WTI) oil has surged towards $90 per barrel as tensions in the Middle East escalate. The Strait of Hormuz, a critical energy shipping route, was closed by Iran's military, impacting nearly 27% of global energy supply. The closure is part of ongoing tensions between Iran and the US.

Iran's Foreign Minister Abbas Araghchi warned that any aggression against Iranian infrastructure would lead to a 'powerful and decisive response,' mirroring a threat made by US President Donald Trump. Investors are now focused on key monetary policy announcements from central banks, including the European Central Bank (ECB), which is expected to leave interest rates unchanged.

The WTI oil price has been driven higher by supply risks in the Middle East. The Strait of Hormuz and Bab el-Mandeb Strait closures have collectively impacted almost 27% of global energy supply. The situation remains uncertain, with potential for further escalation.