WTI drifts higher to near $89.50 as US launches renewed strikes against Iran

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $89.50 during the early European trading hours on Thursday. The WTI price edges higher amid renewed skirmishes between the United States (US) and Iran. 

The US launched a fresh round of military strikes against Iran, stoking worries that the Iran war could disrupt energy supplies for longer. This, in turn, could boost the WTI price in the near term. The US Central Command (CENTCOM) said American forces had started “launching additional self-defense strikes against multiple targets in Iran at the commander in chief's direction.” The military added that the operation was carried out “in response to Iran’s unwarranted and continued aggression.”

On Thursday, Bahrain, Jordan and Kuwait reportedly intercepted Iranian missiles and drones aimed at US military facilities, wider regional involvement in the conflict, Reuters reported. 

US crude oil inventories continued their downward plunge last week. According to the US Energy Information Administration (EIA) report, crude oil stockpiles in the US for the week ending June 5 declined by 7.228 million barrels, compared to a decline of 7.974 million barrels in the previous week. The market consensus was for 4.0 million barrels.