Early on Friday, WTI crude oil prices have soared by more than $1 over increasing tensions in the Middle East region following the US’s decision to launch airstrikes against an Iranian miltia group. At the time of writing, WTI crude oil is trading at around $62.85 per barrel.
Crude oil has been edging higher since news of the airstrikes came out a few days ago, amid heightened supply risks in the Gulf region as a result. Geopolitical tensions between the US and Iran are once again back in focus, leaving markets concerned about whether this would impact the supply of crude oil from the world’s leading oil producers in the region.
Crude oil prices have also been trading bullish recently over optimism about the US and China signing the phase one trade deal shortly. Markets are buoyed by expectations that a reduction in trade tensions between the world’s largest economies would boost oil demand.