Military strikes by US forces against Iranian targets near key oil chokepoints lift crude prices amid supply disruption fears.
West Texas Intermediate crude oil advanced toward $79.50 per barrel Wednesday, extending a three-day rally as US military action against Iran heightened supply risks. Prices rose after US Central Command conducted strikes on Iranian missile and drone sites along the Strait of Hormuz, a critical transit route for 20% of global oil flows.
The escalation follows renewed US sanctions and a naval blockade in the strait, reversing recent export gains by Persian Gulf producers. Prior to the strikes, markets had stabilized after an interim peace deal allowed increased shipments from the region.
Broader risk sentiment improved after US inflation cooled more than expected in June, with CPI falling to 3.5% year-over-year from May’s 4.2% peak. The softer data reinforced expectations for a less aggressive Federal Reserve policy path.