WTI leaps to $75 amid US-Iran war risks

West Texas Intermediate surged more than 6% on Tuesday, climbing above the $75 mark as the ongoing US-Iran war raises fears of potential oil supply disruptions through the Strait of Hormuz.

By noon, the benchmark crude oil benchmark was trading around $76.16, its highest level since June 2025.

The Strait of Hormuz handles around 20% of world oil shipments, making it one of the most important energy chokepoints. Senior officials from Iran’s Islamic Revolutionary Guard Corps reportedly declared the strait closed, warning that any vessel attempting to pass through could be “set ablaze.”

Shipowners have largely halted transit through the chokepoint amid rising security concerns, with several vessels anchored outside the Strait.

Meanwhile, Saudi Aramco has suspended operations at its Ras Tanura refinery following a drone strike in the area. The facility can process about 550,000 barrels of crude per day.

Reuters reported on Monday that Goldman Sachs estimates an $18 per barrel real-time geopolitical risk premium in oil prices, which could moderate to around $4 per barrel if only 50% of flows through the Strait of Hormuz are disrupted for a month.

(Source: OANDA)