Oil prices fluctuate amid escalating US-Iran maritime tensions

West Texas Intermediate (WTI) crude oil experienced significant volatility this week, rising to $98.50 per barrel on Friday following a price point of $93.20 on Thursday. The market has been driven by intensifying military conflict in the Persian Gulf, where reports indicate that Iran attacked ten vessels near the Strait of Hormuz in retaliation for the US sinking five Iranian oil tankers. This confrontation marks the most significant escalation in maritime hostilities since the beginning of the six-month war.

Energy Information Administration (EIA) data released this week showed a smaller-than-anticipated draw in US crude stockpiles of 391,000 barrels for the week ending September 4, falling short of the expected 1.6 million barrel decrease. Amid these tensions, US President Donald Trump stated he is not pursuing a deal with Iran and does not expect oil prices to decline until after the November midterm elections. While US Secretary of State Marco Rubio has warned of retaliatory strikes against Iranian shipping, markets remain cautious, balancing potential supply risks against technical overbought conditions and upcoming US inflation data.