Key Moments
- WTI trades near $90.20 per barrel in Asian dealings on Friday, interrupting a three-session advance.
- The U.S. enters a 13th straight day of strikes against Iran, with both sides rejecting immediate diplomatic engagement.
- Attacks on tankers and key infrastructure disrupt major export routes, including roughly 80% of Kazakhstan’s crude flows.
WTI Holds Firm After Sharp Weekly Advance
West Texas Intermediate (WTI) crude oil is trading around $90.20 per barrel during Asian hours on Friday, halting a three-day stretch of gains. Despite the pause, WTI remains on course for a weekly gain of more than 10%, driven by intensifying fears of large-scale disruptions to global crude supplies.
The sharp upswing in prices has been fueled by a rapid escalation of tensions in the Middle East, which has heightened concerns among market participants about the security of key shipping routes and energy infrastructure.
Escalating U.S.-Iran Confrontation Raises Supply Fears
Market anxiety has deepened as the United States has initiated its 13th consecutive day of strikes against Iran. Both Washington and Tehran have firmly dismissed the prospect of near-term diplomatic talks, reinforcing investor unease about a prolonged confrontation.
Tensions have climbed further following remarks from President Trump, who threatened “major military punishment” against Iran and Houthi forces in response to any additional attacks on Red Sea shipping. He also stated that he is weighing a “massive attack” on Iran itself.
Targeted Tankers and Chokepoints Disrupt Trade Flows
The latest warnings come in the wake of strikes by Iran-backed Houthi militants on two Saudi oil tankers in the Red Sea. This maritime corridor is a crucial alternative export route for Saudi Arabia, particularly as ongoing conflict continues to hinder vessel traffic through the strategically important Strait of Hormuz.
Amid the mounting risk, Asian buyers have started talks to divert Saudi crude cargoes through the Suez Canal and around Africa. These contingency plans highlight the degree of concern among importers about potential interruptions to normal shipping patterns.
Additional Supply Pressure from Caspian Pipeline Disruption
Regional supply stress has been compounded by the suspension of crude loadings by the Caspian Pipeline Consortium at its Black Sea terminal following tanker attacks. This stoppage has effectively cut off about 80% of Kazakhstan’s oil exports, adding another significant constraint to available seaborne supply.
| Factor | Impact on Oil Market |
|---|---|
| WTI price action | Trades near $90.20 per barrel, up more than 10% for the week |
| U.S. strikes on Iran | 13th straight day of operations, no near-term talks expected |
| Houthi attacks on Saudi tankers | Targets Red Sea shipping route, a key Saudi export alternative |
| Caspian Pipeline Consortium loading halt | Curbs around 80% of Kazakhstan’s crude exports |
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