US-Iran Tensions Send Oil Prices Soaring Again

Oil prices rose for a third consecutive session on Wednesday as renewed fighting between the US and Iran heightened fears of prolonged disruptions to crude supplies from the Middle East.

The Brent futures price climbed to $95.55 per barrel, while West Texas Intermediate (WTI) crude futures gained 0.6% to $90.73 per barrel. The US launched a fresh barrage of airstrikes against Iranian targets overnight, prompting retaliatory missile and drone attacks by Tehran against US forces in Jordan and Bahrain.

The renewed confrontation has raised concern that the conflict could further restrict tanker movements through the Strait of Hormuz and deepen an already significant supply shock. The risks intensified after two supertankers carrying Saudi crude were hit by unidentified projectiles while passing through the strait on Monday.

ING analysts noted, 'We’ve seen oil flow through the Strait of Hormuz despite the stalemate between the US and Iran, but rising tensions clearly put crossings at risk.'

The US energy secretary said 17 million barrels of oil flowed through the Strait of Hormuz on Monday, although analysts pointed out that ship-tracking data suggest more modest volumes, making longer-term averages a more reliable measure of flows.