WTI Crude Falls to $73 Amid Middle East Tensions, But Supply Risks Provide Support

WTI Crude Falls to $73 Amid Middle East Tensions, But Supply Risks Provide Support

West Texas Intermediate (WTI) crude oil price retreats from Tuesday’s sharp rally, trading near $73.00 during Wednesday’s Asian session. The price had surged more than 5% the day before amid mounting fears of supply disruptions through the critical Strait of Hormuz — a transit route for nearly 20% of global seaborne oil shipments.

Strait of Hormuz Anxiety Limits Downside

Tensions continue to rise as US President Donald Trump calls for Iran’s “unconditional surrender” via social media, escalating the geopolitical conflict. The US is reinforcing its military presence in the region, while Israel considers intensifying attacks. Despite the price correction, fears of a supply crisis continue to support WTI’s price floor.

Fed Decision in Focus

Meanwhile, market participants are also closely monitoring the US Federal Reserve’s interest rate announcement due later today. The Fed is expected to keep rates steady at 4.5%, but any dovish language or forward guidance could indirectly influence commodity markets, including crude oil, through US Dollar fluctuations.

Iran Seeks Mediation

Reports suggest Tehran has reached out to regional mediators like Oman, Qatar, and Saudi Arabia to push Washington toward a ceasefire — a potential factor that could ease market tension and weigh on oil prices in the near term.

Internal Linking Suggestions for Tredu.com

• Geopolitical Risks and Their Impact on Oil Prices
• What is the Strait of Hormuz and Why It Matters?
• Latest WTI Crude Price Analysis
• How the Fed Influences Commodity Markets