Crude oil futures rise as US conducts fresh strikes on Iranian targets

Crude oil futures experienced a rise on Wednesday following the US conducting fresh strikes on Iranian targets. By 9:31 am, US Brent oil futures had increased by 4.23 percent to $95.44, and WTI (West Texas Intermediate) crude oil futures climbed by 0.51 percent to $90.68. September crude oil futures on MCX (Multi Commodity Exchange) opened at ₹8610, up from ₹8536, while October futures rose to ₹8379, up from ₹8335.

The US Central Command disclosed that their forces conducted a series of strikes against Iranian military objectives on September 1. These included air defence systems, radar installations, maritime assets, mine laying capabilities, and communication sites. This action came in response to recent attempted assaults by the IRGC (Islamic Revolutionary Guard Corps) on commercial shipping in the Strait of Hormuz and American service members.

US President Donald Trump expressed satisfaction with the US position, claiming nearly complete control of the Strait of Hormuz. He further commented on Iran's collapsing economy, asserting that the nation was merely experiencing the inevitable consequences of its actions. Warren Patterson, Head of Commodities Strategy at ING Think, and Ewa Manthey, Commodities Strategist, noted that tensions in the Persian Gulf had further escalated, causing Brent to surpass $95 a barrel and reach its highest level in over a month. They also highlighted the ongoing risks to regional oil supplies due to the escalating conflict.