WTI Oil Prices Climb as Iran Tensions Escalate

WTI oil prices are trading near $92 per barrel after attempts to consolidate above $93. The support for oil prices is coming from the supply side, primarily due to concerns over commercial shipping in the Strait of Hormuz.

Iran announced plans to create its own 'exclusion zone' in the strait, increasing tensions with the US. The US reported strikes on three Iranian oil tankers following new attacks on American naval vessels.

Despite these tensions, OPEC+ decided to keep October production at September levels after six months of consecutive quota increases. This decision is providing support for oil prices.

The US physical market remains tight due to high refinery runs and exports, which are offset by record domestic production.

The medium-term balance is less clear due to the current escalation in tensions around the Strait of Hormuz. OPEC lowered its estimate for global oil demand growth in 2026 to around 580K barrels per day.