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Brent tops $95 as Iran retaliates with strikes on US allies in Gulf
Oil prices rose on Wednesday after the United States and Iran exchanged military strikes, ending weeks of relative calm in the Middle East as the two sides continue to battle for control over the Strait of Hormuz.
Brent crude futures, the global benchmark for oil prices, rose around 1% to settle at $95.63 a barrel. US West Texas Intermediate (WTI) crude also gained roughly 1% to close at $91.01 a barrel.
US Central Command (CENTCOM) said in a statement that the US military carried out a wave of strikes against Iran’s Islamic Revolutionary Guard Corps on Tuesday.
CENTCOM said the strikes targeted air-defense sites, radar systems, naval assets, mine-laying capabilities and communications facilities.
In response, the IRGC said it targeted US military positions in Jordan, Kuwait, Bahrain, Iraq and the United Arab Emirates, according to Iranian state media.
The clashes marked the first confrontation between the United States and Iran since July, as Washington seeks to weaken Tehran’s ability to attack vessels and disrupt shipping through the Strait of Hormuz.
More than 17 million barrels of oil passed through the Strait of Hormuz on Monday, the highest level since the war began in late February, US Energy Secretary Chris Wright told CNBC’s Brian Sullivan on Wednesday.
Around 20 million barrels per day of crude oil and petroleum products passed through the Strait of Hormuz before the war began.
US oil prices have risen 9% this week as the market reprices the risk of disruptions to crude exports from the Middle East following the renewed hostilities.
Trump rejects negotiations with Iran
Meanwhile, US President Donald Trump signaled that he is not interested in negotiating with Iran.
The US strategy has shifted toward exerting economic pressure on Tehran through a naval blockade and an expanded sanctions campaign.
“I am not trying to force Iran to the negotiating table. I like our position now much better, with near-total control of the Strait of Hormuz and their economy completely collapsing,” Trump said in a post on Truth Social.
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