Geopolitical risks in the Middle East drive WTI prices up $4 as Iran-backed groups threaten Israel and disrupt Red Sea shipping.
West Texas Intermediate crude traded at $92.52, extending a $4 gain as Middle East tensions escalated. Iran-backed Houthi militias declared a ban on Israeli vessels in the Red Sea and targeted Israel, following reciprocal strikes between Israel and Iran.
OPEC+ agreed to increase supply by 188K barrels from July, marking the fifth production hike since late February. However, analysts note the Strait of Hormuz blockade prevents these barrels from reaching global markets, limiting the impact on prices.
Iran’s foreign ministry warned of worsening chaos in the peace process, while its Parliamentary Speaker threatened U.S. and allied bases in the Gulf. Markets remain on edge over potential supply disruptions in the region.