WTI spikes amid escalating Middle East Tensions
Oleh Akhtar Faruqui
Dikemas kini: 14 Jul 2026
ARTIKEL POPULAR
West Texas Intermediate (WTI) oil price extends its gains for the second successive day, trading around $79.60 per barrel during the Asian hours on Tuesday. Crude oil prices rise due to mounting supply anxieties following a sharp escalation of geopolitical hostilities in the Middle East.
- WTI gains as Trump reinstated an Iranian blockade and imposed a 20% transit fee on other vessels securing the strait.
- President Trump backed a sanctions bill to penalize international buyers of Russian oil and natural gas.
- Supply anxieties worsened after two UAE oil tankers were struck by Iranian cruise missiles near Oman.
West Texas Intermediate (WTI) oil price extends its gains for the second successive day, trading around $79.60 per barrel during the Asian hours on Tuesday. Crude oil prices rise due to mounting supply anxieties following a sharp escalation of geopolitical hostilities in the Middle East.
US President Donald Trump has reinstated a naval blockade targeting Iranian vessels and customers transiting the Strait of Hormuz, while simultaneously announcing that all other commercial cargo passing through the strategic waterway will be subject to a 20% reimbursement fee. Trump asserted that the US must be financially compensated for its military efforts to secure the volatile chokepoint, pointing directly to regional nations that benefit from US protection, including Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, and Kuwait.
The aggressive maritime measures follow a fresh wave of tit-for-tat military exchanges between Washington and Tehran. While the US aims to neutralize Iran's capacity to disrupt international shipping, Tehran has retaliated by targeting American allies across the Gulf. In a separate move, President Trump stated he would support a Russian sanctions bill, originally championed by the late Senator Lindsey Graham, that aims to renew and intensify penalties against international buyers of Russian oil and natural gas.
Compounding the energy market crisis, the UAE Ministry of Defence confirmed early Tuesday that two of its national oil tankers, the Mombasa and Al Bahiyah, were struck by Iranian cruise missiles. According to Reuters reports, the targeted attack occurred in the southern shipping lane of the Strait of Hormuz within Omani territorial waters.
WTI Oil FAQs
WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.
Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.
The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.
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