WTI jumps above $70.00 as Iran missile strike on Israel sparks fears In global oil markets

• WTI price spikes to near $70.65 in Wednesday's Asian session. 
• Middle East geopolitical risks underpin the WTI.
• Crude Oil Inventory dropped, falling short of expectations.

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $70.65 on Wednesday. WTI price edges higher after Iran launched missiles at Israel in a direct attack, raising fear of supply disruptions in a region.

Iran launched over 200 ballistic missiles at Israel, and Prime Minister Benjamin Netanyahu vows to retaliate against Iran for a missile attack on Tuesday, but Tehran warned that any response would result in "vast destruction, fuelling fears of a wider war. Additionally, Israel warned it could attack Iranian oil facilities, which could lead to a regional war with Iran, increasing the risk of crude supply disruptions.

US crude oil inventories dropped less than expected last week. According to the American Petroleum Institute (API), crude oil stockpiles in the United States for the week ending September 27 declined by 1.5 million barrels, compared to a fall of 4.339 million barrels in the previous week. The market consensus estimated that stocks would decline by 2.1 million barrels.

On the other hand, less dovish remarks from the Federal Reserve (Fed) Chair Jerome Powell pushed back against calls for another big rate cut in November, pointing out that the Fed remains data-dependent. Fed Chair Jerome Powell stated that more rate cuts are likely as the economy remains on solid ground, yet he cautioned against rapid changes. 

Traders will monitor the US Federal Reserve (Fed) Thomas Barkin, Raphael Bostic, Beth Hammack, Alberto Musalem, and Michelle Bowman's speeches for fresh impetus. Any hawkish comments from Fed officials could drag the WTI price lower. It's worth noting that lower interest rates will reduce the cost of borrowing, which generally lifts the oil demand.