WTI nears $73.00 with Middle East tensions keeping downside attempts limited

• Oil prices surge to two-month highs after Israel's attack on Iran.
• The closure of the Strait of Hormuz might bring Crude prices well above $100.
• US WTI prices have appreciated more than 7% today, reaching levels near $73.00.

Oil prices have rallied beyond 7% so far today, boosted by growing concerns of a full-blown war in the Middle East that would ignite an already volatile region and cause a severe disruption in global Oil supply.

Israel attacked Iran with unprecedented strength earlier today, hitting key nuclear sites and killing high-ranking Revolutionary Guard Officials. Iran responded with drone attacks and pulled out of the nuclear talks with the US.

Oul rallies on concerns of a full-blown Israel-Iran war

Crude prices skyrocketed after the news, with all eyes turning to the strategic Strait of Hormuz route, which carries about 20% of the global Oil supply and whose closure might push the price of the barrel up to the $120-130 area, according to market sources.

The US benchmark West Texas Intermediate (WTI) surged more than $5 so far today, jumping from $67.75 to the $72.90 area at the moment of writing. Downside attempts are being contained above the $70.00 psychological level.

Data released by the US Energy Information Administration (EIA) on Wednesday revealed that US Oil stocks declined by 3.6 million barrels in the first week of June, against market expectations of a 100K buildup. The data highlights strong demand and increased support for prices.