WTI gains ground above $76.50 amid fears of Middle East oil production disruptions

• WTI price extends upside near $76.85 in Tuesday's early Asian session. 
• Fears of wider Middle East conflict boost the WTI price. 
• Investors await additional stimulus measures from Chinese officials. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $76.85 on Thursday. The WTI price extends the rally as escalating geopolitical tensions in the Middle East raised speculation that Israel may attack Iran's oil infrastructure.

Oil prices soared on fears that Israel might be targeting Iran's oil industry in retaliation for Tehran's ballistic missile attack. Iran-backed Hezbollah launched rockets toward Israel's third-largest city, Haifa, early Monday. On the first anniversary of the Gaza war, Israel planned to ramp up ground incursions into southern Lebanon, causing the fear of wider war in the region, per Reuters. 

"There is growing concerned that (the) conflict may continue to escalate - not only putting Iran's 3.4 mmbopd (million barrels of oil per day) of production at risk - but creating further disruptions to regional supply," noted analysts at Tudor, Pickering, Holt & Co. 
 
Sluggish Chinese demand and dismal global economic data have dampened the outlook for oil markets this year. However, investors will closely watch additional policy measures from China's top economic planning body on Tuesday after mainland China markets return from a week-long holiday. The lack of fresh measures or a smaller-than-expected package could also disappoint the market and weigh on the WTI price.