Audio By Carbonatix
Oil rose on Wednesday as President Donald Trump reimposed a naval blockade on all Iranian ports and Iran launched retaliatory strikes on U.S. infrastructure in the region.
For the second straight session, Brent closed at its highest since June 12 and West Texas Intermediate at its highest since June 15 and rose further on early Wednesday trade.
Brent rose $1.46, or 1.72%, to $86.19 a barrel by 0029 GMT while WTI was up $1.11, or 1.4%, to $80.40 a barrel.
Oil prices closed up 2% to a one-month high on Tuesday as attacks deepened a supply disruption in the Strait of Hormuz, where some one-fifth of the world’s oil and liquefied natural gas transited prior to the beginning of the war.
Early on Wednesday, the U.S. also began a fresh round of strikes "to continue degrading Iranian capabilities used to attack commercial shipping in the Strait of Hormuz," the U.S. military said.
Tehran says it has again closed the strait after hostilities between Iran and the U.S. reignited last week, fraying an already fragile truce reached in June after several months of fighting.
"I'll save the energy targets for last, but ultimately we'll hit energy targets," Trump told Fox News in an interview aired Tuesday night on "Special Report with Bret Baier".
Iran's army said early on Wednesday that it had launched drone attacks against U.S. positions at Jordan's Azraq base. There was no immediate comment from the Pentagon.
Iran's Islamic Revolutionary Guard Corps said they targeted weapons and storage facilities in Bahrain and Kuwait. Reuters could not immediately verify the reports.
The flare-up over the last few days has heightened doubts that a memorandum of understanding signed last month would lead to a permanent halt to the war, which has engulfed Iran's neighbors.
“The chances of oil moving back toward $100 in the reasonably near term are still meaningful if hostilities intensify which damages energy infrastructure around the Gulf,” Tim Waterer, chief market analyst at KCM Trade said, noting Brent prices could remain at $75-$80 a barrel if diplomatic efforts helped reopen the strait.
“For now, the risk premium is still embedded, but it’s not a one-way bet given that there remain incentives for both sides to find a diplomatic solution.”
Latest Stories
-
Black Stars: Thomas-Asante receives late call-up for September-October games
50 minutes -
NPP Techiman South demands immediate release of detained Nurse Salomey Awiti Baffoe
1 hour -
‘Let’s stop the politics’ — Dafeamekpor calls for united fight against drug trafficking
1 hour -
Chief Justice Baffoe-Bonnie leads new 11-member Council for Legal Education and Training Board
1 hour -
Decades of silent diplomacy: Baba Issifu Kamara at 70
1 hour -
30% transport fare hike still on the table, talks resume Tuesday – GPRTU
1 hour -
KATH marks 70th anniversary with inter-directorate games
2 hours -
Black Stars: Godwin Attram replaces Desmond Ofei as assistant coach
2 hours -
Nkrumah never dies
3 hours -
CalBank ‘Abakade Promo’ rewards 5 customers with GH¢25,000 in first draw
3 hours -
Ecobank, Joy Business to host financial dialogue on green finance and inclusive agri-growth in Ghana
3 hours -
Nkrumah’s vision remains relevant to Ghana’s future — Mahama
3 hours -
Hitz FM announces Beach Rave for October 31
4 hours -
CPP calls for protection and revival of state-owned enterprises to honour Nkrumah
4 hours -
emPLE Life Insurance named Rising Brand of the Year at 6th CIIG Insurance Excellence Awards
4 hours