Oil prices rose Wednesday after the U.S. and Iran traded military strikes, breaking weeks of relative calm around the Strait of Hormuz. Brent crude traded near $96 a barrel as Washington pressed a campaign to protect shipping lanes and Tehran struck back at U.S. positions across the Gulf.
Brent nears $96 after Tuesday's strikes
Brent crude rose 1% to $95.57 a barrel, while U.S. West Texas Intermediate traded nearly 1% higher at $90.88 a barrel. The move followed a U.S. military strike Tuesday on Iran's Islamic Revolutionary Guard Corps, which targeted air defense sites, radar systems, maritime assets, mine-laying capabilities and communication sites, according to U.S. Central Command.
Iran's Revolutionary Guard said it struck U.S. military positions in Jordan, Kuwait, Bahrain, Iraq and the United Arab Emirates in retaliation, according to Iran's state media. The exchange marks the first fighting between the two sides since July, as Washington works to curb Tehran's ability to strike ships and disrupt traffic through the Strait of Hormuz.
Hormuz traffic hits a wartime record
More than 17 million barrels of oil transited Hormuz on Monday, a record since the war began in late February, U.S. Energy Secretary Chris Wright told CNBC. About 20 million barrels per day of crude and products moved through the strait before the war began. The U.S. oil price has gained nearly 9% this week as the market prices back in the risk to Middle East crude oil exports.
Trump rules out talks with Tehran
President Trump indicated he has no interest in negotiating with Iran, and the U.S. has instead shifted to economic pressure through a naval blockade and an expanded sanctions campaign. According to a Truth Social post, Trump said: "I'm not trying to force Iran to the bargaining table." He added that he prefers the current U.S. position of near-total control over the Strait of Hormuz while Iran's economy collapses.
Source: CNBC
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