WTI could rebound as escalating Middle East tensions revive serious concerns over oil supply disruptions. The US carried out a third round of retaliatory strikes on Iranian coastal sites on Wednesday after Iran launched a ballistic missile attack from Isfahan. Meanwhile, Tehran warned of full-scale conflict if Israel continues its military operations against Hezbollah in Lebanon.
WTI crude oil traded volatilely near $87.40 per barrel during Wednesday’s Asian session after posting losses of more than 2.5% in the previous session. Oil prices initially rebounded as escalating Middle East tensions reignited fears of severe supply disruptions.
Although prices briefly declined on Tuesday following a temporary pause in hostilities between Israel and Iran, tensions quickly intensified again. Reports indicated that the US carried out a third round of retaliatory strikes on Iranian coastal facilities after Iran launched at least three ballistic missiles from Isfahan. The attacks followed earlier US strikes that Washington described as a proportional response to Iran’s downing of a US helicopter near the strategically important Strait of Hormuz.
At the same time, diplomatic attempts to establish a lasting ceasefire remain stalled. Tehran warned it would resume full-scale military action if Israel continues operations against Hezbollah in Lebanon, while Israel’s stance has complicated efforts by the Trump administration to secure a permanent truce.
Supply concerns were further amplified after API data showed US crude inventories fell by 9.1 million barrels last week, reaching their lowest level in four months as buyers rushed to replace disrupted Persian Gulf supplies. Despite ongoing conflict and fragile peace negotiations, the US Energy Secretary stated that shipping activity and oil exports through the Strait of Hormuz are currently increasing.
THE ETERNAL SOVEREIGN 
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