WTI rises to near $93.00 as Iran launches missiles toward Kuwait, Bahrain
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Oil prices spiked as Middle East supply fears grew after Iran fired unsuccessful ballistic missiles at Kuwait and Bahrain.
The failed missiles prompted retaliatory US airstrikes on Iran's Qeshm Island.
Analysts fear the escalating conflict will force a dangerous drawdown of global crude oil inventories.
West Texas Intermediate (WTI) gains ground for the third successive day, trading around $92.90 per barrel during the Asian hours on Wednesday. Crude oil prices surge amid renewed supply anxieties following a fresh escalation of hostilities in the Middle East, marked by Iran launching ballistic missiles toward neighboring Kuwait and Bahrain.
According to the United States (US) military, the missiles failed to hit their targets, prompting American forces to conduct retaliatory strikes on Iran's Qeshm Island. Compounding the market's caution is the deep uncertainty surrounding US-Iran peace negotiations. While US President Donald Trump has maintained that discussions remain ongoing, state media reports out of Iran have cast significant doubt on the progress of the talks.
The diplomatic impasse centers on President Trump’s demand for explicit, written commitments from Tehran regarding specific nuclear-related concessions. While Iran had previously offered verbal assurances on parts of its nuclear program, the US is holding out for a legally binding, preliminary framework to end the conflict.
With a diplomatic breakthrough nowhere in sight, energy analysts fear that global crude inventories will have to be drawn down to dangerously low levels. The stakes are exceptionally high, as Iran has effectively paralyzed most non-Iranian shipping through the Persian Gulf since the onset of the war. By choking off roughly a fifth of global oil and liquefied natural gas (LNG) flows, coupled with a retaliatory US blockade on Iranian ports, the conflict has already driven energy prices up by 50% or more, leaving the global economy highly vulnerable to prolonged disruptions.
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