WTI climbs above $84.50 as mounting supply concerns threaten major global export routes.

• President Trump warned that any Houthi attempts to disrupt critical Saudi oil export routes would be met with retaliatory military action.
• An attack on a Kuwaiti oil tanker has underscored the persistent security risks facing key shipping lanes in the Persian Gulf.
• Strikes targeting Black Sea export terminals threaten the main corridor responsible for transporting most of Kazakhstan’s crude oil exports.

WTI crude oil extended its rally for a second straight session, trading near $84.60 per barrel during Wednesday’s Asian session as growing supply concerns across several major export routes supported prices. The latest gains reflect rising geopolitical risks that now extend beyond the Middle East, raising fears of potential disruptions to global energy flows.

In the United States, President Donald Trump downplayed the prospects of near-term negotiations with Iran and warned that further military action remains possible. He also pledged a swift response if Iran-backed Houthi forces follow through on threats to target commercial vessels operating in the Red Sea.

The Red Sea has become an increasingly important export route for Saudi Arabia during the regional conflict. By diverting part of its crude shipments through pipelines to Red Sea ports, the kingdom has reduced its dependence on the strategically sensitive Strait of Hormuz. Nevertheless, maritime security concerns remain elevated, highlighted by a recent attack on a Kuwaiti tanker transporting oil products through the Gulf region.

Meanwhile, supply risks are not limited to the Middle East. Market participants are also watching repeated drone strikes targeting the Caspian Pipeline Consortium terminal on Russia’s Black Sea coast. The facility serves as a crucial export gateway for Kazakhstan, handling most of the country’s crude oil shipments to international markets, making any disruption a potential threat to global supply.