WTI holds steady as traders weigh US-Iran tensions and supply risks

West Texas Intermediate (WTI) Oil trades little changed on Friday as traders weigh easing fears of an immediate US-Iran military escalation against persistent supply risks in the Strait of Hormuz. At the time of writing, WTI trades around $90.65 per barrel, up 0.10% on the day.

Oil prices pared some of their gains on Thursday after US President Donald Trump said Washington would not attack Iran before the November midterm elections while reiterating that Tehran would not be allowed to acquire a nuclear weapon.

US Vice President JD Vance also told Reuters earlier this week that Iran must make a “meaningful” reduction in its nuclear enrichment capacity to end the war. A senior Iranian official responded that Tehran would not give up its right to enrich uranium and said Washington’s proposals remain at odds with Iran’s demands.

Iran has also maintained that it will not reopen the Strait of Hormuz until its conditions are met. On Friday, Iran’s Islamic Revolutionary Guard Corps (IRGC) warned that vessels using what it considers unauthorised routes could be pursued beyond the Strait and across the wider region.

The latest warning followed reports from Iran’s Tasnim News that a large liquefied petroleum gas tanker had been hit and caught fire. The IRGC blamed the United States for the escalation in regional maritime tensions.

Elsewhere, the supply picture remains mixed. Regional crude exports are improving, led by Saudi Arabia after the restart of its East-West pipeline, which allows crude to reach the Red Sea without passing through the Strait of Hormuz. However, fighting between Saudi Arabia and the Houthis keeps risks to regional energy infrastructure elevated. Meanwhile, Hurricane Isaias has forced producers to shut down around 1.3 million barrels per day, or 62.9% of Gulf of Mexico Oil production.