WTI Oil trades near five-month highs, staying above $103.00 amid fresh attacks in the Strait of Hormuz

WTI Oil holds above $103.00, having touched a fresh five-month high of $104.00.
Supply disruption worries have intensified as attacks continue in the Strait of Hormuz.
While regional powers press ahead with peace efforts, the US has not ruled out military action.

Oil extends its gains for a third straight day on Friday, with supply disruption fears mounting after reports of fresh attacks on vessels trying to pass through the Strait of Hormuz. Having touched a five-month high just above 104.00 earlier in the session, the US benchmark West Texas Intermediate (WTI) remains above $103.00 a barrel. Prices are heading towards a 15% gain for the month.

TMGM Analysis: Financial Market News, Economic Calendar & Market Insights

Crude prices continue to draw support from attacks on shipping in the Strait of Hormuz. According to the UK Maritime Trade Organisation (UKMTO) on Friday, two limpet mines exploded and disabled an oil tanker. This marked the first successful attack using this type of explosive since the conflict began in February.

Adding to worries over global supply, authorities from the Iranian Islamic Revolutionary Guard Corps (IRGC) asserted that four vessels had struck tankers in the Hormuz waterway. Meanwhile, Tehran-backed Houthi militias claimed attacks on airports and oil infrastructure in Saudi Arabia.

Can Qatari mediators secure a peace deal on their return to Tehran?

Regional mediators, meanwhile, are persisting with efforts to secure a peace agreement that remains elusive. A Qatari delegation has returned to Tehran for another bid to bring the US and Iran back to negotiations, Reuters reported earlier on Friday. The visit followed alleged contact between US Vice President JD Vance and Iranian officials, during which he proposed a fresh diplomatic process.

With the two sides still deeply divided over key matters such as uranium enrichment, markets remain doubtful about any near-term breakthrough towards a negotiated end to the conflict. In this context, the Wall Street Journal reported on Thursday that a senior US commander had briefed US President Donald Trump on military options in Iran. The report suggests that fighting could resume after next week’s mid-term elections.

WTI Oil: Frequently Asked Questions

What does WTI Oil mean?

Among the crude oils traded internationally, WTI stands for West Texas Intermediate. Alongside Brent and Dubai Crude, it is one of the three major types. Its relatively low gravity and sulphur content earn it the descriptions “light” and “sweet”, respectively. Regarded as a high-quality oil, WTI is easy to refine. It originates in the United States and is distributed through the Cushing hub, known as “The Pipeline Crossroads of the World”. WTI serves as an oil market benchmark, with its price regularly cited in media reports.

What determines WTI Oil prices?

Supply and demand chiefly determine WTI Oil prices, as they do for other assets. Stronger global growth can therefore lift demand, while weak global growth can have the reverse effect. Supply disruptions arising from political instability, wars or sanctions can also affect prices. Another important influence is the set of decisions taken by OPEC, a grouping of major oil-producing countries. Since oil is traded predominantly in US Dollars, the value of the US Dollar also matters for WTI Crude Oil prices. A weaker US Dollar can make oil more affordable, while a stronger one can do the opposite.

How do inventory figures affect WTI Oil prices?

WTI Oil prices respond to the weekly oil inventory reports issued by the American Petroleum Institute (API) and the Energy Information Agency (EIA). Inventory movements reflect shifts in supply and demand: a decline in stocks can signal stronger demand and lift oil prices, whereas rising stocks can point to greater supply and weigh on prices. The API releases its report every Tuesday, followed by the EIA the next day. The two sets of findings are generally close, coming within 1% of each other 75% of the time. As the EIA is a government agency, its figures are regarded as more reliable.

How do OPEC decisions affect WTI Oil prices?

At meetings held twice a year, the 12 oil-producing nations that make up OPEC (Organization of the Petroleum Exporting Countries) jointly set production quotas for member countries. These decisions frequently influence WTI Oil prices. Lower quotas can constrain supply and lift oil prices; an increase in OPEC production has the reverse effect. The broader OPEC+ grouping brings in ten additional non-OPEC members, with Russia the most prominent among them.