Oil Steady as US-Iran Strikes Renew Supply Worries
Oil prices were little changed after hitting one-month highs, as US-Iran strikes raised supply concerns while 17 million barrels still transited Hormuz.
Oil prices were largely unchanged on Wednesday after touching their highest levels in over a month earlier in the session, as traders balanced the threat of supply disruptions from renewed US-Iran hostilities against evidence that crude shipments continue to move.
Brent crude futures edged up 9 cents to $94.74 a barrel, while US West Texas Intermediate crude slipped 19 cents to $90.03. Both benchmarks had earlier climbed to their strongest since July 24, reaching intraday highs of $97.04 and $92.29 respectively.
The market is caught between two opposing forces, according to analysts. A potential diplomatic breakthrough could send prices tumbling sharply, while any further escalation would undermine hopes for a deal and push values higher. This binary outlook has left oil highly volatile, with traders bracing for swings of up to $5 in either direction on fresh headlines.
The latest price action follows the most significant exchange of fire between the US and Iran in weeks. Washington has threatened further strikes, while Tehran's Islamic Revolutionary Guard Corps warned that American attacks would further restrict traffic through the Strait of Hormuz — a waterway that carried roughly one-fifth of global oil consumption before the conflict and which Iran has effectively closed to commercial shipping.
The escalation comes after a weekend flare-up, the first since July, and follows attacks on two tankers departing the strait on Monday. Those incidents have disrupted supply chains and forced traders to seek alternative crude cargoes.
Despite the tensions, US Energy Secretary Chris Wright said Tuesday that 17 million barrels of oil transited the Strait of Hormuz on Monday — the highest volume since the war reduced flows. Analysts noted that while oil continues to move through the waterway despite the stalemate, rising tensions clearly put future crossings at risk.
In a separate development, Russia launched a massive missile and drone attack on energy infrastructure in Ukraine's southern Odesa region overnight, according to transmission system operator Ukrenergo.