WTI Back Above $91 as War Premium Returns

West Texas Intermediate crude oil prices surged back above $91 per barrel, driven by the sudden return of a geopolitical risk premium. This upward pressure on energy markets follows escalating conflict in the Middle East, which has heightened trader anxieties regarding potential disruptions to global oil supplies. Energy analysts note that the renewed tensions have quickly overshadowed recent macroeconomic demand concerns, injecting fresh volatility into commodity trading floors. As the situation develops, market participants are closely monitoring regional developments for any signs that could further threaten critical crude shipping routes and production infrastructure.

October WTI crude oil futures are trading at $91.80 Thursday night, up $8.36 or 10.02% for the week so far. The contract traded as low as $84.11 early in the week before reaching $93.14, its strongest level since late July. The market began the week testing whether more cargoes moving through the Strait of Hormuz would take the war premium out of crude. That selloff did not hold. The United States and Iran exchanged their heaviest fire since July. Iran tightened shipping restrictions. Kuwait came under missile and drone fire. Israel renewed threats…

Source: Oilprice

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