Oil prices surge as Iran-linked attacks disrupt key shipping routes and US-Iran tensions escalate, offsetting bearish technical signals.
West Texas Intermediate crude climbed to $87.50, its highest level since June 11, as Middle East tensions intensified. Iran-backed groups targeted Saudi oil tankers in the Red Sea, while Iran threatened to block the Strait of Hormuz, a critical oil transit chokepoint.
The rally follows 12 consecutive nights of US-Iran strikes and a warning from President Trump to retaliate against Iranian attacks. Analysts cited supply route volatility rather than production cuts as the primary driver, with further disruptions expected.
Technically, WTI remains below its 100-day simple moving average at $88.10, capping the rebound. Prices hovered near $87.50 in early European trading, up from $88.15 earlier in the week.