10% weekly surge: WTI holds above $90.00 amid Middle East escalation

• Escalating US-Iran conflicts and Red Sea attacks drive sharp fears of global oil supply disruptions.
• Trump warns of massive military retaliation following Houthi strikes on Saudi oil tankers.
• Global shipping reroutes, and Black Sea loading halts further choke critical crude export routes.

West Texas Intermediate (WTI) oil price halts its three-day winning streak, trading around $90.20 per barrel during the Asian hours on Friday. However, WTI crude price is on track to surge over 10% this week. The dramatic rally comes as escalating tensions in the Middle East stoke intense fears of widespread global oil supply disruptions.

Fueling the market anxiety, the United States has launched its 13th consecutive day of strikes against Iran, with both nations firmly ruling out near-term diplomatic talks. Tensions flared further after President Trump threatened “major military punishment” against Iran and Houthi forces over any subsequent strikes on Red Sea shipping, while noting that he is considering a “massive attack” on Iran itself.

These severe warnings follow recent strikes by Iran-backed Houthi militants against two Saudi oil tankers in the Red Sea. The targeted waterway serves as a vital alternative export corridor for Saudi Arabia, particularly as ongoing combat continues to snarl vessel movement through the critical Strait of Hormuz.

In response to the growing peril, Asian importers have already begun discussions to reroute Saudi crude shipments through the Suez Canal and around Africa. Compounding the regional supply squeeze, the Caspian Pipeline Consortium suspended crude loadings at its Black Sea terminal following tanker attacks, effectively choking off approximately 80% of Kazakhstan’s oil exports.