WTI improves to $72.70 on supply disruptions, Iran strikes near the US Consulate in Iraq

• WTI prices edge higher on supply disruptions as Houthi broadens targets in the Red Sea.
• The route diversion of maritime vessels is raising shipping costs and transit times for oil transportation.
• Islamic Revolutionary Guard Corps (IRGC) launched missiles to dismantle espionage centers near the US Consulate in Erbil, Iraq.

West Texas Intermediate (WTI) price makes an effort to retrace its recent losses, trading near $72.70 per barrel during the Asian session on Tuesday.

The heightened situation follows supply disruptions in the Red Sea, with maritime vessels altering their routes away from the region due to attacks by Yemen's Houthi movement. This course diversion is contributing to elevated shipping costs and extended transit times for the transportation of Crude oil.

On Friday, the US-led Combined Maritime Forces (CMF) headquartered in Bahrain issued a warning, advising all ships to steer clear of the Bab al-Mandab Strait.

Iranian state media has reported that the Islamic Revolutionary Guard Corps (IRGC) launched missiles targeting northern Iraq near the US Consulate in Erbil. According to the statement, ballistic missiles were employed to dismantle espionage centers and gatherings of anti-Iranian terrorist groups in the region.

These attacks coincide with heightened concerns over Israel's ongoing offensive in the Gaza Strip and an escalation in the Red Sea by Iran-backed Houthi rebels.

On Monday, a US-owned and operated container ship was struck by an anti-ship ballistic missile in areas under Houthi control in Yemen. Moreover, a representative from Yemen's Houthi movement announced their plan to expand the scope of their targets in the Red Sea region to include US ships.

The declaration follows ongoing attacks, with the Iran-allied group expressing their determination to continue despite recent military strikes by the United States (US) and the United Kingdom (UK) on their sites in Yemen.