WTI futures jump above $83.00 amid fears of new Middle East tolls disrupting nearly 30% of global oil flows.
West Texas Intermediate crude futures climbed 6% to $83.00 in European trading Wednesday, reversing a three-day decline. The rally follows reports that Yemen’s Houthi rebels, backed by Iran, may impose tolls on ships traversing the Bab el-Mandeb Strait, a chokepoint handling 7% of global oil supply.
Prices were already elevated after Saudi Arabia and U.S. forces conducted joint strikes on Houthi targets in Iraq, retaliating for attacks on Saudi energy infrastructure. Analysts warn the toll threats could escalate military conflict, further tightening oil markets already strained by supply risks.
The Strait of Hormuz, which handles 20% of global oil, remains under U.S. protection, but the Houthis’ move signals broader regional instability. Markets are pricing in prolonged supply disruptions if tensions persist.