Crude oil price ascends after fresh US strikes, WTI above $91/bbl, Brent above $96/bbl

US-Iran war: Oil prices climbed nearly 1% in early trading on Wednesday, extending the sharp gains recorded in the previous session, as fears of supply disruptions grew following overnight strikes exchanged between the US and Iran. The developments also reduced expectations of a swift de-escalation of tensions in the Middle East.

Brent crude futures rose 87 cents, or 0.92%, to $95.52 a barrel, after jumping 4.6% on Tuesday and moving above the $95-a-barrel mark. Meanwhile, US West Texas Intermediate (WTI) crude futures advanced 80 cents, or 0.89%, to $91.02 a barrel.

Both benchmarks gained more than $4 in the previous session, with Brent recording its biggest one-day increase since July 24 and WTI posting its strongest rise since July 23.

The United States said it carried out a series of overnight airstrikes on targets in Iran, triggering a retaliatory response from Tehran and marking the most significant escalation in hostilities between the two countries in several weeks.

US Central Command said the strikes came after recent attempted attacks by Iran’s Islamic Revolutionary Guard Corps (IRGC) on commercial vessels operating in the Strait of Hormuz, as well as on US service members stationed in the region.

In response, the IRGC warned that the US strikes would further hamper shipping through the Strait of Hormuz, a strategically important waterway that accounted for roughly one-fifth of global oil consumption before the conflict and has effectively been shut to commercial shipping by Iran.

The IRGC also claimed responsibility for a ballistic missile attack on a US military base in Jordan, saying the strikes killed a large number of American personnel. Iranian state media separately reported that drones had launched a large-scale attack on a US base in Bahrain in retaliation for the American strikes.

Jordan’s military said its air defence systems intercepted 10 of the 13 ballistic missiles that entered its airspace. Two US officials said there had been no reports of American casualties from the attacks so far, while Kuwait said its armed forces were responding to hostile drone activity.

The latest escalation followed a weekend intensification of fighting, the first such flare-up since July. It also came after two tankers leaving the Strait of Hormuz were attacked on Monday, further disrupting oil supplies and prompting traders to look for alternative sources of crude.

Disclaimer : This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.

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