Oil prices climbed nearly 2% on Wednesday as renewed US airstrikes on Iran and fresh sanctions on Tehran's oil exports reignited concerns over supplies from the Middle East after attacks on commercial vessels in the Strait of Hormuz.
Oil prices fell sharply on Monday after the United States and Iran halted hostilities over the weekend, raising hopes that a diplomatic breakthrough could ease tensions in the Middle East. However, shipping through the region's two critical maritime chokepoints – the Strait of Hormuz and the Bab al-Mandeb Strait – remains severely disrupted, keeping concerns over global energy supplies alive.
Oil prices climbed for a second straight session on Wednesday, with Brent crude rising above $92 a barrel, as investors weighed the risk of widening supply disruptions from the escalating Middle East conflict.
Oil prices surged above $90 a barrel on Monday as the escalating military confrontation between the United States and Iran heightened concerns over supplies from the Gulf, with shipping through the Strait of Hormuz remaining severely disrupted following another night of attacks.
Oil prices extended gains on Wednesday as fears of a prolonged disruption to energy supplies through the Strait of Hormuz intensified following the United States' reimposition of a naval blockade on Iranian ports and fresh threats from Iran's Islamic Revolutionary Guard Corps (IRGC) to shut down regional oil and gas exports.
Oil prices jumped sharply at the start of Asian trading on Monday after the United States launched a second consecutive night of strikes on Iranian military targets and Tehran retaliated with fresh attacks, heightening fears of disruption to crude shipments through the Strait of Hormuz, the world's most important oil transit chokepoint.
Oil prices edged higher on Monday after fresh exchanges of fire between the US and Iran renewed concerns over the security of shipping through the Strait of Hormuz, highlighting the fragility of an interim peace agreement reached earlier this month.
OPEC+ oil-producing countries will likely agree a further hike in their output target for July when they meet on Sunday, Reuters said quoting three sources.
Oil prices declined further on Thursday, following the release of the text of the interim agreement signed by the US and Iran.
Oil prices further declined on Wednesday, extending the previous session's losses following the US-Iran interim peace deal which is expected to allow free passage for vessels through Strait of Hormuz.
