WTI Oil climbs above $100 as supply disruption fears resurface

• Above $100, WTI Oil is heading for a gain of more than 10% over the past three weeks.
• Supply disruption fears have resurfaced as Saudi oilfields come under attack and Iran tightens its control over the Strait of Hormuz.
• Oil prices have received further support from reports of US and Israeli plans for additional coordinated strikes on Iran.

Trading above $100 per barrel on Friday, US benchmark West Texas Intermediate (WTI) is on course to gain more than 10% over the past three weeks. Oil has extended its rally following reports of a growing number of incidents involving vessels trying to pass through the crucial Strait of Hormuz this week, alongside renewed attacks on Saudi oilfields by the Iran-backed Houthis.

With Iranian forces tightening their control over the vital Strait of Hormuz corridor, the risk of supply disruptions from Gulf countries has returned to the fore. The navy of the Iranian Islamic Revolutionary Guard Corps (IRGC) said four additional tankers had been struck while conducting “illegal” oil transfers. Another three hit mines as they attempted to pass through the waterway.

Middle East conflict approaches eighth month with no resolution in sight

At the same time, Yemen’s Houthi militias are stepping up strikes on targets in Saudi Arabia. Attacks earlier this week on Aramco’s Shaybah Oilfield and Dammam airport left four people dead and eight others injured.

As the conflict between the US and Israel and Iran nears its eighth month, there is still no clear prospect of an end. Citing US officials, the New York Times reported on Thursday that the US and Israel might be preparing a fresh round of coordinated strikes after November’s midterm elections.

In response, the IRGC warned that additional strikes on Iranian territory would lead Tehran to adopt an offensive strategy and invade neighbouring countries. Such a move would spread the conflict further across the region and put additional pressure on crude oil flows.