Middle East Conflict Rockets WTI Past $113, Jolting Global Markets
Key Takeaways
- WTI crude oil gained about 5% on Monday
- Prices surged past $113 per barrel, testing the highest bids since 2022
- Spike coincided with ongoing Middle East tensions
WTI price volatility
WTI crude experienced extreme intraday volatility, briefly gapping above $113 in Asian trading before plunging under $95.
“Crude Oil sees sharp spike as Middle East tensions continue to sizzle West Texas Intermediate (WTI) Crude Oil gained about 5% on Monday, but the headline figure disguised a wild session”
The plunge produced a large upper wick that traders interpreted as heavy profit-taking.
The move still left prices above last week’s close after an extraordinary rally, with WTI posting roughly a 36% gain for the week — the largest weekly rise in WTI futures history — underscoring how rapidly risk premia re-entered oil markets on geopolitical shock.
Such price action translated into WTI trading around $93.15 by the report and left technical indicators in a near-term bullish setup as short-term averages trended higher.
Middle East oil disruptions
The primary driver cited for the shock move was escalating Middle East tensions: the Islamic Revolutionary Guard Corps (IRGC) has effectively closed the Strait of Hormuz since March 2 following US‑Israeli strikes on Iran, a development that has halted roughly 20% of daily global oil flows and sharply tightened supply expectations.
Simultaneously, regional producers have reduced shipments — Iraq cut about 1.5 million barrels per day, Kuwait trimmed output, and Saudi Arabia initiated production cuts — amplifying the market’s sensitivity to any prolonged disruption.
“Crude Oil sees sharp spike as Middle East tensions continue to sizzle West Texas Intermediate (WTI) Crude Oil gained about 5% on Monday, but the headline figure disguised a wild session”
Crude price risk outlook
Market analysts and banks flagged the risk of much higher prices if disruptions persist, and Goldman Sachs warned that a disruption lasting more than 30 days could push crude toward $140-$150 per barrel.
“Crude Oil sees sharp spike as Middle East tensions continue to sizzle West Texas Intermediate (WTI) Crude Oil gained about 5% on Monday, but the headline figure disguised a wild session”
That warning, coupled with confirmed regional supply cuts and the functional closure of a major chokepoint, heightened concerns about the durability of available crude volumes and forced traders to price in a materially elevated risk premium.
Geopolitics and energy markets
U.S. President Donald Trump said he will not negotiate with Iran and ordered the U.S. Navy to escort tankers through the strait.
That step was aimed at ensuring seaborne energy flows but also underscored the risk of direct military friction.
“Crude Oil sees sharp spike as Middle East tensions continue to sizzle West Texas Intermediate (WTI) Crude Oil gained about 5% on Monday, but the headline figure disguised a wild session”
On the macro calendar, U.S. February CPI data and weekly EIA inventory figures were flagged as imminent inputs that could be elevated by recent energy moves.
The prior EIA report had shown a 3.5 million-barrel build, a factor that markets will weigh against stronger crude prices driven by supply risks.
WTI market reaction summary
WTI’s surge above $113 and the subsequent intraday reversal reflect frantic market re-pricing amid a sudden regional disruption.
“Crude Oil sees sharp spike as Middle East tensions continue to sizzle West Texas Intermediate (WTI) Crude Oil gained about 5% on Monday, but the headline figure disguised a wild session”
That disruption has removed a significant share of global seaborne supplies and prompted both supply cuts and security interventions.
The market remains on edge, with technical indicators showing a near-term bullish tilt.
Policymakers’ and banks’ warnings imply a risk of much higher prices if the Strait of Hormuz remains effectively closed.
This summary relies solely on the provided FXStreet report and additional source material would be needed to broaden perspectives and corroborate or contest specific claims.