WTI crude oil remains above $85.50 as escalating Middle East tensions raise concerns over global supply disruptions.

Last Updated on 01/09/2026

• WTI prices rise as renewed US-Iran hostilities and threats against Kharg Island heighten concerns over disruptions to global crude supplies.
• Strait of Hormuz risks intensify after a supertanker struck naval mines, underscoring the growing threats to one of the world’s most important oil transit routes.
• Russian refinery attacks by Ukraine have reduced refining capacity, pushing fuel margins to record levels and adding further pressure to global energy markets.

West Texas Intermediate (WTI) crude advanced for a second consecutive session, trading near $85.60 per barrel during Tuesday’s Asian trading hours. The latest gains came as renewed conflict in the Middle East fueled fears that regional instability could disrupt oil production and transportation.

Tensions escalated after US forces reportedly targeted Iranian rocket launchers on Larak Island, followed by Iranian attacks on targets in the UAE and Jordan. Concerns increased further after President Donald Trump warned of possible military action against Kharg Island, Iran’s key oil export terminal.

The Strait of Hormuz has also emerged as a major source of supply risk. A supertanker reportedly caught fire after hitting two naval mines, highlighting the vulnerability of vessels operating through the strategic waterway. Despite the incident, oil shipments have continued, although major Gulf producers such as Saudi Arabia, the UAE, Kuwait, and Iraq are reportedly maintaining only partial flows.

Meanwhile, attacks by Ukraine on Russian oil refineries have further reduced global refining capacity. The combination of tighter Middle Eastern supply prospects and weaker Russian refining operations has pushed refined-product margins to record highs, signaling growing strain across energy markets.

US–Venezuela Oil Deal Adds Another Layer of Uncertainty

Energy markets are also assessing claims of a new US–Venezuela oil agreement. BNY’s Wee Khoon Chong noted that President Trump has said the United States reached a deal that would give it majority control over more than 65 billion barrels of Venezuelan oil reserves.

Trump has described the arrangement as coming at no cost to US taxpayers and argued that it could strengthen bilateral relations while helping reduce gasoline prices. However, the lack of clarity surrounding the agreement’s legal structure and implementation has left investors uncertain about when, or whether, the potential additional supply would reach global markets.

With geopolitical risks rising and crude flows facing pressure from multiple regions, WTI remains supported above $85.50, while traders continue to closely monitor developments across the Middle East, Russia, and Venezuela.