WTI crude oil prices climbed above $89.00 per barrel during early Asian trading Thursday, recovering earlier losses as geopolitical tensions escalate following fresh US military strikes in Iran. The US crude benchmark was trading around $89.35 as markets reacted to the renewed conflict in the Middle East, a region critical to global energy supplies.
The strikes represent a significant escalation in US-Iran relations and are injecting immediate volatility into oil markets. Traders are pricing in potential supply disruption risks, particularly given Iran’s strategic position along major shipping routes including the Strait of Hormuz, through which roughly one-fifth of global oil supply passes.
Energy sector positions are seeing heightened activity as investors reassess geopolitical risk premiums. The timing during Asian hours suggests global markets will likely experience continued volatility as European and US trading desks come online.
FXnCO Insight
Traders should prepare for continued oil price volatility and consider hedging energy exposure while monitoring developments for potential supply chain disruptions that could push WTI toward the $90.00 psychological resistance level.
Source: FXStreet