US-Iran Hostilities Send Oil Prices Soaring Above $95
Oil prices surged above $95 per barrel on Tuesday as renewed hostilities between the US and Iran fueled concerns about supply disruptions through the Strait of Hormuz. This marked a 4.6% rally from the previous day, with Brent crude rising to $95.47 per barrel and West Texas Intermediate reaching $90.72 per barrel.
The tensions escalated after US President Donald Trump announced strikes on Iranian targets near the strait, citing Iranian sea mines and missile attacks on a US military base in Jordan. Iran pledged retaliation, while Kuwait, Jordan, and Bahrain sounded alerts and intercepted missiles on Wednesday morning.
Vessel crossings through the Strait of Hormuz dropped sharply, falling from 23 last Wednesday to 10 on Monday, according to Kpler data. This has raised fears of increased disruption to oil supplies.