WTI extends upside above $70.50 ahead of US Retail Sales release

• WTI price extends the rally to near $70.60 in Tuesday’s Asian session. 

• The ongoing conflict between Israel and Iran lifts the WTI price. 

• The US Retail Sales data for May will be the highlight later on Tuesday. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $70.60 during the Asian trading hours on Tuesday. The WTI price edges higher amid persistent geopolitical risk in the Middle East. The American Petroleum Institute (API) weekly crude oil stock will be released later on Tuesday. 

An Israeli attack targeted Iran's state broadcaster on Monday, while the head of the United Nations (UN) nuclear watchdog reported substantial damage to Iran's largest uranium enrichment facility. 

A senior commander stated 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. Fears that a wider war in the region could disrupt supplies in the region continue to underpin the WTI price. 

However, the hope of easing Middle East geopolitical tensions might cap the upside for the black gold. US President Donald Trump said Iran wants to talk about de-escalating the conflict, helping quell fears that a protracted war would engulf a region that produces around a third of the world’s crude.

Oil traders will keep an eye on the US May Retail Sales data, which is due later on Tuesday. If the report showed a stronger-than-expected outcome, this could boost the Greenback and weigh on the USD-denominated commodity price in the near term.