Brent and WTI hit multi-week highs after Iran strikes US bases in Bahrain, Kuwait, and Jordan, amplifying supply disruption fears.
Brent and WTI crude futures climbed to their highest levels since mid-June for a second consecutive session, driven by escalating US-Iran hostilities. The renewed conflict widened geographically after Iran launched retaliatory strikes on US infrastructure in Bahrain, Kuwait, and Jordan, raising concerns over supply disruptions in the Strait of Hormuz.
Markets had already priced in a geopolitical risk premium following last week’s flare-up, but the latest strikes deepened uncertainty over the June truce’s durability. Traders are now focusing on the potential for direct action against Iranian oil infrastructure, a scenario not yet fully reflected in prices.
Early Wednesday trading saw oil extend gains as the US conducted fresh strikes targeting Iranian capabilities in the Strait of Hormuz. Iran reasserted its threat to close the critical waterway, while US officials signaled energy targets could eventually be hit, though no immediate action was taken.