WTI rises to near $89.50 as Middle East supply threats offset Persian Gulf recovery

• WTI advances as persistent Middle East supply risks and tanker attacks push oil prices higher.

• Houthi missile interceptions and Strait of Hormuz disruptions continue to threaten regional energy flows.

• Crude gains remain capped as Persian Gulf shipments recover.

West Texas Intermediate (WTI) oil price extends its gains for the second successive day, trading around $89.50 per barrel during the Asian hours on Wednesday. Crude oil climbed as persistent risks to Middle East energy flows overshadowed signs of rising supply from the region.

Iran has intensified attacks on tankers in the Strait of Hormuz in recent days, with the UK Maritime Trade Operations reporting nine incidents so far this month. Meanwhile, a Saudi-led coalition said it had intercepted and destroyed a ballistic missile launched by the Houthis toward Khamis Mushait in Saudi Arabia.

However, the upside in oil prices could be restrained as energy flows from the Persian Gulf show signs of recovery. Tankers are discreetly passing through the Strait of Hormuz despite heightened risks, and Saudi Arabia’s East-West oil pipeline has restored its crude pumping capacity to 5.8 million barrels per day.

Oil balances tighten as Middle East risks offset heavier flows

According to TD Securities, “crude oil is being weighed down by increasing flows,” but these additional barrels are “increasingly being met by both higher demand and Iranian/Houthi hostility.” The strategists highlight that rising supply is being absorbed by stronger consumption and ongoing disruptions linked to Iran and Houthi activity, leaving the broader balance for crude benchmarks tighter than headline flow data alone might suggest.