Oil Hot Up – Brent Tops $95 as U.S.-Iran Tensions Escalate
Escalating military tensions between the US and Iran and rising risks to maritime transportation through the Strait of Hormuz pushed oil prices higher on Wednesday.
International benchmark Brent crude futures for December delivery traded at $95.54 per barrel, up 4.3% from the previous close of $91.57.
US benchmark West Texas Intermediate (WTI) crude futures for October delivery traded at $90.69 per barrel, up 0.52% from $90.22.
Iran’s Islamic Revolutionary Guard Corps (IRGC) claimed Wednesday that US personnel were killed and drones were destroyed in a missile and drone attack on the headquarters and accommodation of the US commander at Ali Al Salem Air Base in Kuwait.
The IRGC said the strike was carried out simultaneously with attacks on US bases in Jordan, Bahrain, and Erbil.
On Tuesday evening, US Central Command (CENTCOM) targeted areas around the Strait of Hormuz and southern Iran in its latest attacks.
Iranian media reported explosions on Qeshm Island in the Strait of Hormuz, in the city of Sirik, the strategic port city of Bandar Abbas, and in the southern coastal areas of Asaluyeh, Chabahar and Konarak.
Jiroft Airport in Kerman province was also reported to have been targeted.
Iran’s Islamic Revolutionary Guard Corps (IRGC) said it had shot down a US MQ-9 unmanned aerial vehicle (UAV). The statement said the US attacks had “further tightened the lock on the Strait of Hormuz.”
“The more the US military insists on continuing its aggression in the region, the greater and heavier the losses it will have to bear,” Iran’s General Staff said.
The resumption of clashes in the region supported oil prices by raising concerns over prolonged disruptions to energy flows through the Strait of Hormuz.
Meanwhile, the American Petroleum Institute (API) estimated that US commercial crude oil inventories fell by 2.6 million barrels last week, compared with market expectations for a decline of 400,000 barrels.
The estimate was another factor supporting prices, as it pointed to strengthening oil demand or tightening supply. US Energy Information Administration (EIA) is set to release official US oil inventory data later today. Oil Prices Dip as Qatar, Oman Champion Middle East Peace Effort
