Oil prices rise amid Iran-US tensions

Global oil prices continued to rise on Wednesday as tensions between the United States and Iran escalated, raising fresh concerns about energy supplies moving through the Strait of Hormuz.

Global oil prices continued to rise on Wednesday as tensions between the United States and Iran escalated, raising fresh concerns about energy supplies moving through the Strait of Hormuz.

Brent crude futures gained 99 cents, or 1.2%, to trade at $85.72 per barrel, while US West Texas Intermediate (WTI) crude rose 64 cents, or 0.8%, to $79.98 per barrel. The latest increase came after both benchmarks ended Tuesday about 2% higher, marking their strongest closing levels in roughly a month.

The rally was driven by reports that President Donald Trump had ordered a renewed naval blockade of Iranian ports, while Iran responded with strikes targeting US-linked infrastructure and military positions in the region. Investors are increasingly worried that the confrontation could disrupt oil flows through the Strait of Hormuz, one of the world’s most important energy transit routes.

The strait handles roughly one-fifth of global oil and liquefied natural gas shipments, making any threat to shipping in the area a major concern for international markets. Traders have been closely monitoring developments after Iran announced that it had again closed the waterway following the collapse of a fragile truce reached earlier this year.

The US military said on Wednesday that it had launched another round of strikes aimed at degrading Iranian capabilities used to attack commercial shipping in the Strait of Hormuz. Washington has accused Tehran of threatening regional maritime security, while Iran maintains that its actions are a response to US and Israeli military operations.

President Trump, speaking in an interview aired on Fox News, indicated that energy-related targets could become part of the broader US strategy if the conflict continues to escalate.

Iranian military officials said drone attacks had been launched against US positions at Jordan’s Azraq air base. There was no immediate confirmation from the Pentagon. Separately, Iran’s Islamic Revolutionary Guard Corps claimed it had targeted weapons depots and storage facilities in Bahrain and Kuwait, though independent verification of those claims was not immediately available.

Market analysts said the physical oil market remains adequately supplied for now, but the geopolitical risk premium has increased significantly.

Priyanka Sachdeva, senior market analyst at Phillip Nova, said that any further escalation involving the Strait of Hormuz or additional sanctions on Iranian oil exports could quickly tighten market sentiment and push prices higher.

Tim Waterer, chief market analyst at KCM Trade, said Brent crude could move toward the $100-per-barrel level if hostilities intensify and energy infrastructure across the Gulf region is damaged. However, he added that prices could stabilize in the $75-$80 range if diplomatic efforts succeed in reopening the strait and reducing tensions.

The renewed confrontation has also cast doubt on whether a memorandum of understanding signed last month between the parties can still lead to a lasting ceasefire. The conflict has already affected several neighboring countries, increasing fears of a wider regional crisis.

For now, traders remain focused on developments around the Strait of Hormuz, with oil markets likely to remain volatile as investors weigh the risks of further military escalation against the possibility of renewed diplomatic negotiations.