US-Iran Tensions Send Oil Prices Soaring Amid Supply Disruptions

Oil prices continued their upward trend on Wednesday, reaching more than one-month highs before leveling off. Brent crude futures rose by 9 cents to $94.74 a barrel, while U.S. West Texas Intermediate crude futures lost 19 cents to $90.03.

The price gains came despite the fact that oil supplies continue to reach the market, with U.S. Secretary of Energy Chris Wright stating on Tuesday that 17 million barrels of oil transited the Strait of Hormuz on Monday.

However, rising tensions between the US and Iran remain a concern for traders, with Saxo Bank's head of commodity strategy Ole Hansen saying that 'the market is facing a binary risk.' Any escalation in hostilities could further undermine the prospect of a peace deal and send oil prices tumbling.