Oil Prices Surge as Middle East Shipping Attacks Widen Supply Disruptions

Oil prices surged again on Wednesday as attacks on shipping in two of the Middle East's most important trade corridors deepened concern that supply disruptions could last longer than markets had hoped. Brent crude rose 72 cents to $89.63 a barrel, while West Texas Intermediate gained 71 cents to $83.91.

The latest move followed separate attacks involving Iran-aligned Houthi forces and the US military, widening the risk beyond the Strait of Hormuz itself. The EIA estimates only 4.9 million barrels a day of crude and petroleum liquids moved through Hormuz in the second quarter, down from 21.6 million barrels a day in the final quarter of 2025.

The disruption has changed the supply picture, with the EIA's latest outlook showing that 5.5 million barrels a day of Middle East production was shut in during July and assuming Hormuz traffic will remain severely constrained through August before improving gradually from September.

Oil traders are also watching US consumer-price data due later on Wednesday because a sustained move in Brent towards $90 could complicate the Federal Reserve's inflation outlook. Economists expect July headline CPI to rise 0.1% from June and 3.4% from a year earlier, while core inflation is forecast at 0.2% for the month and 2.5% annually.