Oil prices moved higher on Wednesday, as renewed U.S.-Iran hostilities sharpened investor concern over crude supply security. The market remained focused on Gulf export risks and the restricted Strait of Hormuz as the conflict moved into its sixth month.
At 10:27 a.m. (Bangkok Time), September Brent crude futures rose 0.92% to $95.52 a barrel. Front-month U.S. West Texas Intermediate crude gained 0.64% to $90.80 a barrel.
The latest escalation followed new U.S. air attacks on Iranian targets on Tuesday, reducing expectations that the renewed exchange of fire would remain limited. Previously, President Donald Trump has indicated that Washington would respond forcefully after Iran fired missiles overnight at two American air bases in Jordan. Tehran said the missile launches were retaliation for the weekend’s attack on Iran’s Larak Island.
Crude had already strengthened after the first direct attacks between the two sides since July and reports that two tankers were struck while leaving the Strait of Hormuz. Iran has effectively shut the waterway to shipping and has warned it would stop oil exports from the Gulf, despite threats from Trump and a warning from Treasury Secretary Scott Bessent that further U.S. sanctions were imminent.
Diplomatic efforts to restore access to the Strait of Hormuz have shown little progress. Before the war began in late February, the route handled roughly one-fifth of global oil supplies. Shipping data showed visible commodity vessel traffic through the strait dropped to five ships per day over the weekend.
In the U.S, Strategic Petroleum Reserve inventories fell by about 3.1 million barrels last week to 286.6 million barrels. Potential pressure on supply concerns came after Trump said Sunday that crude secured under an agreement with Venezuela would be directed toward refilling the reserve, which is near its lowest level in 44 years.
