WTI extends upside above $72.00 as Israel-Iran conflict deepens

• WTI price rises to near $72.15 in Monday’s early Asian session.

• Concerned over wider conflict between Iran and Israel that could disrupt supplies support the WTI price. 

• Trump’s tariff uncertainty might cap the WTI’s upside.

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $72.15 during the Asian trading hours on Monday. The WTI price extends the rally to the highest since February after Israel attacked two natural gas facilities in Iran, raising fears that a wider war in the region could disrupt supplies in the region. 

The WTI price has risen since Friday following an Israeli attack on Iran. A senior commander said on Saturday that Iran is considering shutting down the Strait of Hormuz. The strait transports around one-fifth of the world's oil to global markets, according to Goldman Sachs. A closure of the strait could boost the oil prices. 

On the other hand, the tariff uncertainty triggered by US President Donald Trump might undermine the WTI price. Trump said that he intends to send letters to dozens of US trading partners in the next one to two weeks, setting unilateral tariffs ahead of the July 9 deadline that came with his 90-day pause.

Oil traders will keep an eye on China’s Retail Sales and Industrial Production for May, which will be released later on Monday. If the reports show a weaker-than-expected outcome, this could weigh on the black gold as China is the world's second-largest consumer of oil and gas.