Crude Oil Rebounds Over 3% Amid Fresh Supply Jitters in West Asia

Crude oil futures rebounded by over 3% on Wednesday after Iran launched strikes on American forces in the region, triggering retaliatory action by the US and Saudi military against Tehran-aligned targets in Iraq.

The rebound came as both sides had held fire over the weekend, after nearly two weeks of nightly strikes by the US on Iran, and repeated missile and drone salvoes by Tehran targeting Washington's allies around the Gulf.

According to analysts, the physical market remains under strain, with oil flows through the Strait of Hormuz down around 80-85% from pre-war levels, and Red Sea shipments also beginning to weaken amid continued Houthi attacks.

The West Texas Intermediate (WTI) for the September contract advanced by $2.91, or nearly 4%, to $82.17 per barrel on the New York Mercantile Exchange, while Brent oil futures for September delivery went up by $3.17, or nearly 4%, to $87.26 per barrel on the Intercontinental Exchange.