WTI trades sideways around $79.00, with upside prospects remaining supported by ongoing Middle East tensions.

WTI edges higher during the Asian session, although buying interest remains limited. Escalating tensions between the US and Iran continue to underpin geopolitical risk premiums, while fears of supply disruptions across key shipping routes lend further support to crude prices.

West Texas Intermediate (WTI), the US benchmark for crude oil, trades modestly higher during Friday’s Asian session but continues to move within a well-established multi-day trading range. The commodity is hovering near $79.35, up roughly 0.5% on the day and close to Tuesday’s one-month peak, leaving it on course for a second consecutive weekly gain as investors remain focused on the possibility of further escalation between the United States and Iran.

Market sentiment remains supported after the US military conducted a sixth straight night of airstrikes against Iran on Thursday, including a strike on an empty oil tanker bound for Kharg Island as part of its renewed naval blockade of Iranian ports. In response, Iran launched attacks on US military positions across the region, intensifying concerns that the conflict could evolve into a broader confrontation. These developments have kept geopolitical risk premiums elevated and continue to provide underlying support for crude prices.

Additional concerns emerged after authorities in Bandar Abbas reported damage to civilian infrastructure, including electricity facilities and a railway station. Iran’s Islamic Revolutionary Guard Corps has also warned of expanding military operations by targeting more regional energy transport routes. Adding to supply concerns, Reuters reported that Tehran has instructed Yemen’s Houthi movement to prepare for the possible closure of the Red Sea oil corridor, creating another potential threat to global energy flows.

At the same time, declining shipping activity through the Strait of Hormuz has reinforced fears of tighter oil supplies, strengthening the case for further upside in crude prices. Even so, traders may prefer to wait for a decisive breakout above the current consolidation range before committing to fresh bullish positions. Nevertheless, the broader fundamental backdrop continues to favor buyers, suggesting that any near-term pullback is likely to attract renewed demand and remain relatively limited.