WTI holds position near $76.50, awaits Iran's reaction to assassination of Hamas leader

• WTI price holds mild gains due to escalated geopolitical tensions in the Middle East.
• Concerns over a weak global economy weaken the demand for Oil.
• US and China Manufacturing PMIs dropped to 46.8 and 49.8, respectively, in July.

West Texas Intermediate (WTI) crude Oil price inches higher to near $76.50 per barrel during Friday’s Asian session. The price of crude Oil may find support from supply risks arising from heightened geopolitical tensions in the Middle East, despite ongoing global concerns about Oil demand.

Markets are closely watching Iran's reaction to the assassination of Hamas leader Ismail Haniyeh. According to the New York Times, Haniyeh was killed in Tehran after attending the inauguration of Iran's new president. Both Iranian officials and Hamas have attributed the attack to Israel.

Weak Purchasing Managers Index (PMI) data from both the United States (US) and China are raising concerns about Oil demand. The US ISM Manufacturing PMI fell to an eight-month low of 46.8 in July, down from 48.5 and below the forecasted 48.8. Similarly, China's Caixin Manufacturing PMI came in at 49.8 for July, missing the expected 51.5 and dropping from the previous 51.8.

Oil traders face uncertainty as they navigate a complex situation involving an economic slowdown and increased expectations for a Federal Reserve rate cut. The CME's FedWatch Tool shows that traders fully anticipate a 25-basis point rate cut on September 18. Additionally, traders are closely watching the upcoming July US Nonfarm Payrolls and Average Hourly Earnings data, set to be released later in the North American session, for insights into the US labor market.