Commodities
WTI Oil Price Slips Below $89 Amid US-Iran Tensions and Escalating Global Risks
The West Texas Intermediate (WTI) oil price slipped below $89.00 on Wednesday despite escalating tensions between the US and Iran threatening the Strait of Hormuz, a crucial trade corridor.
US President Donald Trump announced fresh strikes against Iranian targets around the Strait of Hormuz, framing them as retaliation for Tehran's attempts to lay mines in the strategic waterway and a previous attack on a US military base. Trump further warned of a significantly larger military response should Iran choose to retaliate.
Russia-Ukraine strikes also escalated energy and aviation risks, with Rabobank highlighting that the global energy and agri sectors are already under strain due to mounting supply-side shocks and potential airspace closures.