West Texas Intermediate (WTI) crude oil prices have remained strong for the third consecutive session, trading around $74.80 per barrel during Asian hours on Thursday, as supply disruptions persist amid ongoing conflict in the Middle East [1]. The escalation of regional tensions, driven by United States and Israeli strikes on Iran, has prompted Iranian retaliatory attacks targeting energy infrastructure and has significantly impacted oil and gas flows through the Strait of Hormuz, a strategic chokepoint responsible for about one-fifth of global oil and LNG supplies [1].
According to officials cited by Reuters, Iraq, OPEC's second-largest producer, has reduced its oil output by nearly 1.5 million barrels per day due to storage constraints and blocked exports. If flows do not resume, Iraq could shut in up to 3 million barrels per day within days [1]. MarineTraffic data indicates that at least 200 ships, including oil and LNG tankers, are anchored off Iraq, Saudi Arabia, and Qatar, further highlighting the scale of the disruption. The British navy agency UKMTO reported that eight vessels, including Safeen Prestige, have been hit since Saturday [1].
Hostilities intensified after a US submarine reportedly sank an Iranian warship off the coast of Sri Lanka, an event described by US Defense Secretary Pete Hegseth as the "first such attack on an enemy since World War II." The broader campaign has now entered its sixth day, raising concerns about a prolonged conflict and its impact on global energy markets [1].
Analyst Nikos Tzabouras of Tradu.com, cited by Reuters, warned that a four- to five-week US campaign, Iran's efforts to regionalize the conflict, and the effective closure of the Strait of Hormuz could significantly alter supply-demand dynamics and potentially push crude prices toward $100 per barrel [1]. In response to the heightened risks, US President Donald Trump has offered risk insurance and naval escorts for vessels transiting the Persian Gulf, while Treasury Secretary Scott Bessent has outlined additional measures to stabilize Gulf markets [1].
CONCLUSION
WTI oil prices are holding firm near $75 per barrel as supply disruptions and escalating conflict in the Middle East threaten global energy flows, particularly through the Strait of Hormuz. With Iraq reducing output and hundreds of ships stranded, analysts warn of further price increases if the situation persists. The market impact is high, and forward-looking statements suggest crude prices could rise significantly if disruptions continue.