BY COMFORT OGBONNA
Oil prices continued climbing on Wednesday as renewed military tensions between the United States and Iran increased concerns about potential disruptions to global energy supplies. The latest gains came after U.S. President Donald Trump reinstated a naval blockade affecting Iranian ports, while Tehran launched attacks against U.S. infrastructure targets in the region.
Brent crude futures increased by 58 cents, or 0.7%, to $85.31 per barrel during early trading, while U.S. West Texas Intermediate (WTI) crude futures rose 35 cents, or 0.4%, to $79.69 per barrel.
The increase followed a strong rally on Tuesday, when oil prices closed about 2% higher at a one-month peak as intensifying conflict disrupted shipping activity through the strategically important Strait of Hormuz. Before the latest escalation between the United States and Iran, the waterway carried approximately one-fifth of global oil and liquefied natural gas supplies, making it one of the most critical energy routes in the world.
Market analysts said oil prices have moved higher in response to rising geopolitical risks, although the pace of gains has slowed as traders wait to see whether Washington and Tehran will change their positions or pursue renewed negotiations.
“Brent and WTI have moved higher in response to escalating attacks, but the size of the increase is likely to be limited as the market waits for possible changes in strategy from the U.S. and Iran,” said June Goh, senior oil market analyst at Sparta Commodities.
The U.S. military announced early Wednesday that it had launched another round of strikes aimed at reducing Iran’s ability to threaten commercial shipping operations in the Strait of Hormuz. The announcement added further uncertainty to an already fragile energy market.
Despite the recent price increases, analysts noted that physical oil supplies remain relatively sufficient for now. However, they warned that additional military escalation, further restrictions on Iranian oil exports, or a prolonged disruption in the Strait of Hormuz could quickly tighten global supply conditions and push prices higher.
“While the physical oil market remains adequately supplied, any further escalation involving the Strait of Hormuz or additional sanctions on Iranian exports could quickly tighten market sentiment and increase risk premiums,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.
Iran has claimed that it once again closed the Strait of Hormuz following the renewed fighting between Tehran and Washington. The latest conflict has weakened hopes that a temporary agreement reached in June would develop into a lasting ceasefire after months of military confrontation.
The renewed hostilities have raised concerns among energy traders that the fragile diplomatic progress made earlier could collapse, potentially creating a longer period of uncertainty across global oil markets.
President Trump said in a television interview that the United States would eventually target Iran’s energy infrastructure if the conflict continues. His comments added pressure to already tense markets, with investors closely monitoring whether energy facilities could become targets in future military actions.
Iranian forces also reported launching drone attacks against U.S. positions at a military base in Jordan, although officials in Washington did not immediately confirm the claims. Iran’s Islamic Revolutionary Guard Corps separately said it had targeted weapons and storage facilities in Bahrain and Kuwait.
The reports added to concerns that the conflict could spread beyond Iran’s borders and threaten broader stability in the Middle East, a region responsible for a significant share of the world’s energy production.
Investors are now closely watching developments around the Strait of Hormuz, diplomatic efforts between the two countries, and any potential impact on oil exports. A prolonged disruption in the region could lead to higher crude prices, increased transportation costs, and renewed inflation pressures for economies around the world.
For now, oil markets remain focused on the balance between available global supplies and the growing geopolitical risks surrounding one of the world’s most important energy corridors.
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