Iran-US Conflict Escalates as US Targets Iranian Tankers

Oil prices surged on Wednesday as the United States and Iran engaged in a significant escalation of their conflict. The US Central Command reported that it had completed a wave of strikes against various Iranian targets, including air defense sites, radar systems, maritime assets, and facilities.

The US targeted two Iranian tankers as part of its new 'tanker for tanker' policy in the Strait of Hormuz, marking the first time it has attacked Iranian tankers in retaliation rather than as part of a blockade. The IRGC claimed to have attacked Camp Titin, a US Marine facility on the Gulf of Aqaba, and also targeted US targets in Bahrain and Kuwait.

The conflict has led to a significant increase in oil prices, with WTI climbing 0.92% to $91.05 per barrel and Brent rising 1.19% to trade at $95.68. The American Petroleum Institute reported a 2.6 million barrel draw in US oil inventories, while 3.1 million barrels were drawn from the Strategic Petroleum Reserve.