Iran Missiles Toward Kuwait, Bahrain Send WTI to $93

West Texas Intermediate crude surged toward $93.00 after Iran launched missiles toward Kuwait and Bahrain, injecting a fresh geopolitical risk premium into oil markets. The attack targeted key Gulf states near major shipping lanes and production infrastructure, marking an escalation that traders had not fully priced into front-month contracts.

The simple read is that any missile strike near Persian Gulf oil infrastructure triggers a bid in crude. The better market read requires looking at the specific chokepoint risk. Kuwait and Bahrain sit adjacent to the Strait of Hormuz, through which about 20% of global oil passes. A conflict that disrupts tanker traffic through that strait would remove supply from the market faster than any demand-side shock. Iran's willingness to strike neighbors rather than just U.S. assets in Iraq or Syria signals a broader regional strategy, one that keeps the risk premium elevated until the response from the U.S. or Gulf Cooperation Council is clear.

Why the Strait of Hormuz Matters for WTI

The Strait of Hormuz is the single most consequential energy chokepoint in the world. Iran has threatened to close it in past standoffs. This missile launch is the first kinetic action that directly threatens Gulf state territory. If shipping insurers raise premiums or if the U.S. Fifth Fleet imposes a no-go zone, the effective supply of crude to Asian and European refiners shrinks immediately. WTI and Brent both repriced higher within minutes of the report. The real test comes at the next session open, when liquidity returns and position-squaring begins.