West Texas Intermediate (WTI) futures on NYMEX traded 0.9% lower to near $79.00 during the European trading session on Thursday, remaining close to its monthly high of $80.61 posted on Tuesday [1]. The core event driving market sentiment is the continued military aggression between the United States and Iran, which has led to restricted energy supply. The US blockade on Iranian seaports is limiting oil flow, while Iranian forces are attacking cargos attempting transit through the Strait of Hormuz without their permission [1]. This has heightened fears of further global energy supply disruptions.
An Iranian army spokesperson stated that the US continues to attack several areas and warned that the conflict could spread to new arenas, as reported by the Islamic Republic News Agency (IRNA) [1]. On Wednesday, US President Donald Trump warned in a Fox News interview that he will authorize military forces to strike Iran’s bridges and power plants next week if Iran does not come to the table for negotiation [1]. Investors are now focusing on President Trump's scheduled speech on Friday, which may provide further direction for oil markets [1].
The ongoing US-Iran tensions and threats of expanded military action are keeping WTI prices broadly firm despite the day's slight decline, as traders anticipate potential supply disruptions. The market is closely watching for any developments that could further impact oil supply and prices [1].
CONCLUSION
WTI oil prices remain resilient near $79 amid escalating US-Iran tensions and threats of supply disruption. The market is highly sensitive to geopolitical developments, with investors awaiting President Trump's upcoming speech for further guidance. Continued aggression and potential military action could significantly impact global energy supply and oil prices.