WTI spikes following fresh US airstrikes on Iran

• WTI rises following fresh US airstrikes on Iran and the revocation of its international oil-sale waiver.

• Iran targets commercial vessels in the vital Strait of Hormuz, striking a Qatari LNG carrier and a Saudi oil tanker.

• Expected supply glut from increased OPEC+ and Middle Eastern production reverses.

West Texas Intermediate (WTI) oil price continues to advance after registering nearly 5% gains in the previous day, trading around $72.20 per barrel during the Asian hours on Wednesday. Global crude oil prices surged after the US military launched fresh airstrikes against Iran and revoked a key sanctions waiver that had allowed the country to sell oil internationally.

The escalation comes on the heels of a series of Iranian attacks targeting commercial vessels in the vital Strait of Hormuz waterway, including a Qatari LNG carrier and a Saudi oil tanker. This renewed friction directly threatens a fragile, interim US-Iran peace agreement and raises the risk of severe global energy supply disruptions as wary shipowners and regional producers avoid the route.

The sudden instability marks a sharp reversal from previous market forecasts of a supply glut, which had been expected after OPEC+ raised production quotas and Middle Eastern producers prepared to ramp up output.