WTI holds gains near $75.00 as supply disruptions persist on Middle East war

• WTI climbs as US-Israeli strikes on Iran escalate tensions and disrupt Oil and gas flows through Strait of Hormuz.
• OPEC has cut output by nearly 1.5 million bpd due to storage constraints and blocked exports.
• MarineTraffic shows 200 ships anchored off Iraq, Saudi Arabia and Qatar; UKMTO reports eight vessels hit since Saturday.

West Texas Intermediate (WTI) Oil price remains stronger for the third successive session, trading around $74.80 per barrel during the Asian hours on Thursday. Crude Oil prices climb as supply disruptions persist amid ongoing Middle East war.

United States (US) and Israeli strikes on Iran have escalated regional tensions, prompting Iranian retaliatory attacks on energy infrastructure and snarling vital Middle East Oil and gas flows, particularly through the strategically crucial Strait of Hormuz, which handles about a fifth of global oil and LNG supplies.

Officials told Reuters that Iraq, OPEC’s (Organization of the Petroleum Exporting Countries) second-largest producer, has reduced output by nearly 1.5 million barrels per day (bpd) due to storage constraints and blocked exports, and could shut in up to 3 million bpd within days if flows do not resume.

MarineTraffic data shows at least 200 ships, including Oil and LNG tankers, are anchored off Iraq, Saudi Arabia and Qatar. British navy agency UKMTO said eight vessels, including Safeen Prestige, have been hit since Saturday.

Hostilities escalated after a US submarine reportedly sank an Iranian warship off the coast of Sri Lanka. US Defense Secretary Pete Hegseth called it the “first such attack on an enemy since World War II.” The broader campaign has entered its sixth day, heightening fears of a prolonged conflict.

Reuters cited Nikos Tzabouras of Tradu.com, who said a four- to five-week US campaign, Iran’s effort to regionalize the conflict, and the effective closure of the Strait of Hormuz could upend supply-demand dynamics and lift crude toward $100.

US President Donald Trump offered risk insurance and naval escorts for vessels transiting the Persian Gulf, while Treasury Secretary Scott Bessent outlined additional measures to stabilize Gulf markets.