Geopolitical risks in the Middle East drive oil prices higher as US and Israel prepare potential military action against Iran.
West Texas Intermediate crude oil rises for a third straight session, trading near $102.30, up 1.35% on the day. Escalating tensions between the US, Israel, and Iran fuel supply disruption fears, pushing prices toward a two-week high.
The rally follows warnings from US officials and reports of coordinated military preparations targeting Iran. Prior sessions saw WTI recover from sub-$87.00 levels, with geopolitical premiums offsetting a stronger USD, which typically weighs on dollar-denominated commodities.
Markets remain on edge amid stalled US-Iran peace talks and ongoing disruptions in key shipping routes. The Strait of Hormuz’s effective closure and US port blockades add to supply concerns, supporting further price gains.