Oil prices climb as renewed US-Iran strikes fuel supply fears
<p>Singapore: Oil prices rose nearly 1% in early Asian trading on Wednesday, extending sharp gains from the previous session, as renewed US-Iran hostilities heightened fears of disruptions to crude supplies from the Middle East.</p> <p>Brent crude futures rose 87 cents, or 0.92%, to $95.52 a barrel, while US West Texas Intermediate (WTI) crude futures gained 80 cents, or 0.89%, to $91.02 a…
Oil prices surged above $95 on Wednesday following renewed fighting between the US and Iran, which raised concerns about potential disruptions in the Strait of Hormuz. Brent, the benchmark for two-thirds of the world's oil, increased by 0.87% to $95.47 a barrel, while West Texas Intermediate, the gauge that tracks US crude, rose by 0.55% to $90.72 a barrel. Both benchmarks jumped more than $4 on Tuesday, marking their highest gain in over a month.
US President Donald Trump announced on Tuesday that the US had launched "large and powerful" strikes on Iranian targets near the Strait of Hormuz in response to Iran's attempted deployment of sea mines in the strait and the shooting of eight missiles at a US military base in Jordan, all of which were successfully neutralized. Trump also threatened a "biggest attack of them all," which he predicted would leave "very little left of the Islamic republic of Iran."
Iran vowed to retaliate against the US attacks, with the southern part of the country being targeted. Kuwait, Jordan, and Bahrain issued alerts and intercepted missiles on Wednesday morning. The renewed hostilities in the Middle East drove crude prices higher, causing Wall Street to decline and global bond yields to reach multi-year, and in some cases, multi-decade highs.
Financial analyst Kyle Rodda from Capital.com noted that the US escalation against Iran for alleged mine-laying attempts led to a surge in crude prices, which in turn impacted global markets negatively.
Crossings through the Strait of Hormuz, a vital waterway through which about a fifth of global oil exports passed before the war began, have decreased in recent days. According to Kpler data, only five vessels crossed the waterway on Tuesday, compared to 10 on Monday, seven on Sunday, and nine on Saturday. This compares to 23 crossings last Wednesday, 25 on Thursday, and 16 on Friday.
Daniel Richards, a senior economist at Emirates NBD, emphasized that any perceived threat to Gulf shipping lanes will maintain an oil-risk premium in the market.
Written by urgent.news from The National UAE's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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