WTI futures surge 2% to $86.12 as blocked Hormuz and Bab el-Mandeb straits tighten global supply amid escalating US-Iran standoff.
West Texas Intermediate crude futures climbed 2% to $86.12 in European trading, reaching their highest level in over three weeks. The rally follows the closure of the Strait of Hormuz and Bab el-Mandeb Strait, which together handle 27% of global oil supply, disrupting energy flows.
Prior to the surge, WTI traded at $81.65 earlier this week. Analysts had expected a modest rebound but not a sustained break above $86. The closures, coupled with US warnings of severe consequences for nations aiding Iran, have heightened fears of prolonged supply constraints.
Markets remain on edge as Qatar’s Foreign Ministry emphasized the need for an Iran-Oman deal on Hormuz management before broader diplomatic talks resume. No immediate price reaction was reported beyond the session highs.