Oil rises as Iran conflict disrupts Hormuz
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- Brent crude rose 0.7% to $85.31 a barrel as renewed U.S.-Iran hostilities increased supply concerns.
- West Texas Intermediate gained 0.4% to $79.69 after both benchmarks closed about 2% higher on Tuesday.
- Analysts said further escalation around the Strait of Hormuz or new sanctions could increase oil-market risk premiums.
Brent crude futures rose 0.7% to $85.31 a barrel, while West Texas Intermediate futures gained 0.4% to $79.69 as U.S.-Iran hostilities intensified.
Both benchmarks closed about 2% higher at one-month highs on Tuesday after attacks worsened supply disruptions around the Strait of Hormuz.
“Brent and WTI have made upward corrections in line with escalating attacks,” said Sparta Commodities senior oil market analyst June Goh.
The U.S. said it launched additional strikes against Iranian capabilities used to attack shipping, while Iranian claims of strikes in Jordan, Bahrain and Kuwait were not independently verified by Reuters.
Following the escalation, the Brent crude price was up 0.7% at $85.31 a barrel, while WTI was up 0.4% at $79.69.
Before the conflict began, the Strait of Hormuz handled about one-fifth of the world’s daily oil and liquefied natural gas shipments.
Brent had surged 9.59% to $83.30 on Monday, advanced about 2% on Tuesday and extended those gains on Wednesday as shipping risks continued.
