FX.co ★ WTI Crude Rises Further to 5-Month High

WTI crude oil futures surged to over $76.50 per barrel on Thursday, reaching a five-month high. This increase was fueled by escalating geopolitical tensions in the Middle East, which pose a threat to energy supply from this crucial region. Hostilities between Israel and Iran intensified as Tel-Aviv claimed to have targeted Iranian nuclear facilities, heightening fears of a broader conflict between the two nations. Moreover, U.S. President Trump adopted a hawkish stance towards Iran, hinting at possible American involvement. Such a development could potentially spark a global conflict and obstruct tanker navigation through the Strait of Hormuz. Concurrently, the U.S. dollar maintained most of its losses from the beginning of the quarter due to uncertain economic policies, prompting investors to move away from dollar-denominated assets. This shift has buoyed commodities priced in the dollar.