West Texas Intermediate (WTI) oil prices edged lower after three consecutive days of gains, trading around $98.90 per barrel during Asian hours on Monday [1]. The decline comes despite intensifying conflict in the Middle East, particularly following Iran-backed Houthi forces in Yemen launching their first strikes on Israel over the weekend. The Houthis have warned that attacks will continue until operations against Iran and its allies cease, raising concerns about further disruptions to shipping through the Red Sea and threats to Saudi energy infrastructure [1]. These developments have heightened fears of potential supply disruptions in the global oil market.
The United States is reportedly preparing for a prolonged ground campaign in Iran, with thousands of troops being deployed to the region. President Donald Trump has floated the idea of taking control of Iran’s oil resources, including its main export terminal on Kharg Island, echoing previous US actions in Venezuela [1]. This signals a possible escalation in US involvement and could have significant implications for oil supply and geopolitical stability.
In a separate development, Trump indicated a policy shift regarding Cuba, stating he does not oppose countries supplying crude oil to the island. This comes as a sanctioned Russian tanker, part of Russia’s so-called “shadow fleet,” nears Cuba carrying a critical shipment, which is expected to provide much-needed relief to Cuba’s strained energy supplies [1].
Market participants remain focused on supply concerns, as expectations for a quick resolution to the Iran conflict continue to fade. The broadening regional conflict and threats to key energy infrastructure are likely to keep oil prices volatile, with potential for recovery if supply disruptions materialize [1].
CONCLUSION
WTI oil prices have dipped below $99 per barrel amid escalating Middle East tensions and supply concerns. The broadening conflict and threats to energy infrastructure are driving market volatility, with traders closely monitoring developments for potential supply disruptions. The situation suggests continued uncertainty and heightened risk in the oil market.