WTI crude falls nearly 3% to $91.90 after reports of US military action near a key oil chokepoint raise supply disruption fears.
The US military conducted airstrikes on empty tankers near the Strait of Hormuz, escalating regional tensions. Iranian media also reported an explosion in the nearby port city of Sirik, though no official explanation has been provided.
Oil markets had already been volatile amid concerns over Middle East stability. WTI crude, a key benchmark, dropped 2.83% on Friday, reflecting investor anxiety over potential supply disruptions in the critical shipping lane.
Traders are awaiting official statements from Washington or Tehran to gauge the risk of further escalation. The Strait of Hormuz is a vital route for global oil shipments, and any prolonged disruption could significantly impact prices.