Oil futures rose on Wednesday as the latest military exchanges between the United States and Iran raised concerns over disruptions to a critical oil transit route, pushing Brent crude and U.S. West Texas Intermediate to multi-month highs.
Brent crude futures settled 1% higher at $95.63 a barrel, while U.S. WTI crude advanced 0.9% to $91.01. Both benchmarks fluctuated between gains of up to $2 per barrel and losses of $1 per barrel during the session, with intraday highs marking the strongest levels since July 24.
The conflict, now in its seventh month, escalated after a month of relative calm. The U.S. conducted strikes on Iranian radar and mine-laying capabilities, while Iran retaliated against American bases across the region. The latest exchange represents the largest direct military confrontation between Washington and Tehran since July. American forces targeted Iran’s southern coast, and Iran fired on U.S. positions in the broader region.
The Strait of Hormuz, a vital shipping corridor, has seen disrupted maritime traffic amid the clashes. Before the conflict, the strait carried roughly one-fifth of global petroleum and liquefied natural gas (LNG) shipments. Global buyers have sought alternative supply sources and drawn down reserves to mitigate price pressures.
Mark Schaefer, director at Liquidity Energy, said the latest attacks signal a significant escalation following a period of relative stability. 'The main concern for the oil market is whether renewed fighting will further degrade physical flows through the region,' he said.
