WTI blasts past $100 as Red Sea, Hormuz risks collide

West Texas Intermediate (WTI), the US crude Oil benchmark, rises more than 7% as attacks in the Middle East intensify, driving WTI above the $ 100-per-barrel barrier for the first time since May 2026. At the time of writing, WTI trades at $103.86 after bouncing off lows of $95.37.

The escalation of the conflict keeps crude underpinned amid fears for a potential supply shortage. Yemen‘s Houthis group, linked to Iran, said that they’re on the verge of controlling the Bab al-Mandab Strait. This is squeezing traffic in the Red Sea, putting pressure on the Saudis.

In other news, the traffic in Hormuz remains restricted, while US officials cited by the WSJ revealed that Iran has ramped up its ballistic missile production, again. Tehran reportedly attacked 10 ships near the Strait on Wednesday, following US attacks on five Iranian tankers

Meanwhile, US President Donald Trump revealed that the US may attack Pickaxe Mountain, near Iran‘s heavily damaged Natanz uranium enrichment facility, saying that the war would likely last after November’s mid-term elections.

Another reason behind Oil‘s rally past $100 is that China is back, to reclaim the title of the world’s largest crude importer. ING said in a note that China has stepped up purchases in recent weeks, as domestic stockpiles have taken a hit. The analyst wrote that if Chinese buying continues to recover, it could amplify the impact of supply disruptions, keeping crude prices higher.

Aside from this US crude Oil inventories dropped by 391K barrels to 424.1 million barrels last week, according to the EIA. The agency noted that refining activity continued to show strength.