Oil Prices Rise as U.S. Strikes Iran for Downing Apache
Oil prices rose as markets weighed renewed supply concerns following fresh US strikes against Iran. Brent crude traded at $91.46 per barrel, up around 0.01% from the previous close of $91.45. US benchmark West Texas Intermediate (WTI) rose about 0.01% to $88.19 per barrel, compared with $88.2 in the previous session.
Prices had slipped around 3% in the previous session, touching a seven-week low on emerging diplomatic signals. However, supply concerns resurfaced after the US launched new strikes against Iran over the downing of an American helicopter, casting doubt on a fragile ceasefire.
US Central Command (CENTCOM) said Tuesday that American forces had completed a series of “self-defense strikes” against Iranian military targets in response to the downing of a US Army Apache helicopter a day earlier.
Iran’s Islamic Revolutionary Guard Corps (IRGC) said early Wednesday that it launched retaliatory attacks on 21 American military targets at US air and naval bases across the region.
Earlier, US President Donald Trump said Washington was compelled to respond to what he described as an Iranian attack that brought down the helicopter.
Iran has not accepted responsibility for the incident. However, Iranian Foreign Minister Abbas Araghchi warned Tuesday that foreign military forces operating near Iran “face risks” and called for them to leave the region.
In a post on the US social media platform X on Wednesday, Araghchi also said that no attack or threat against Iran “will go unanswered” following US strikes in the country’s southern regions.
Meanwhile, the American Petroleum Institute reported a 9.12 million barrels fall in US commercial crude oil stocks last week, surpassing market expectations of a 3.4 million barrels decline.
Market participants will closely watch upcoming reports from the US Energy Information Administration for further confirmation of these trends and their potential impact on prices.
