WTI crude rises 0.8% to $72.60 after US strikes Iranian targets and reimposes oil sanctions amid escalating regional conflict.
Markets turned cautious Wednesday as geopolitical risks in the Middle East intensified. The US military struck Iranian air defenses and drone sites after Iran targeted commercial vessels in the Strait of Hormuz, prompting a near 5% jump in crude prices Tuesday. WTI crude extended gains, trading at $72.60, up 0.8% on the day.
Investors await the Federal Reserve’s June FOMC minutes later in the session, seeking clues on future rate moves. The US dollar strengthened against major currencies, led by a 25 basis point gain versus the Japanese yen this week. Oil’s rally follows the US revoking Iran’s crude export license, tightening supply concerns.
No immediate market reaction data was reported, but energy stocks and safe-haven assets are likely to remain in focus as tensions persist.