WTI Oil rises beyond $100 amid fresh concerns of supply disruptions

Oil rallies further on Friday, boosted by news of increasing incidents in vessels attempting to cross the key Strait of Hormuz this week, while the Iran-backed Houthis renewed their attacks on Saudi oilfields. This has pushed the US benchmark West Texas Intermediate (WTI) to levels beyond $100 per barrel on Friday, on track for a more than 10% appreciation in the last three weeks.

Concerns about supply disruptions from Gulf countries are back to the forefront, as Iran’s forces tightened their grip on the critical Strait of Hormuz corridor. The Iranian Islamic Revolutionary Guard Corps (IRGC) navy affirmed that four more tankers have been hit while involved in “illegal” Oil transfers, and three others hit mines while attempting to cross the waterway.

The Middle East conflict heads into its eighth month with no end in sight

This comes as the Yemeni Houthi militias intensify their attacks on Saudi Arabian targets. Four people were killed and eight more wounded in attacks on Aramco’s Shaybah Oilfield, and the airport of Dammam earlier this week.

Meanwhile, the conflict between US-Israel and Iran approaches its eighth month without a clear end in sight. A report by the New York Times citing US officials suggested on Thursday that the US and Israel might be drawing plans for a new wave of coordinated attacks after November’s midterm elections.

The IRGC, in turn, warned that further attacks on their soil would prompt Tehran to shift into an offensive strategy and invade neighbouring countries, which would extend the conflict within the region and strain crude Oil flows further.