KEY POINTS
- Brent rose 11 cents to $94.76, while WTI gained 1 cent to $90.26.
- About 17 million barrels crossed the Strait of Hormuz on Monday.
- Analysts warn Brent could exceed $100 if Middle East supply disruptions worsen.
Oil prices remained broadly stable on Wednesday after earlier climbing to their highest levels in more than a month, as traders assessed growing risks to crude supplies from renewed military tensions involving the United States and Iran.
Brent crude futures were up 11 cents, or 0.12%, at $94.76 a barrel by 0949 GMT, while US West Texas Intermediate (WTI) crude rose 1 cent, or 0.04%, to $90.26 a barrel.
Both benchmarks had risen sharply earlier in the session. Brent reached $97.04 a barrel, while WTI climbed to $92.29, with both prices marking their highest levels since July 24.
The gains reflected concerns that renewed fighting in the Middle East could disrupt oil production and transportation, particularly through the strategically important Strait of Hormuz.
The United States and Iran returned to a more intense military confrontation on Wednesday following their most significant exchange of fire in several weeks.
Washington has threatened further strikes, raising fears that an escalation could have broader consequences for oil-producing countries and global energy markets.
Iran’s Islamic Revolutionary Guard Corps warned that the latest US attacks could further restrict traffic through the Strait of Hormuz, a critical shipping route through which roughly one-fifth of global oil consumption passed before the conflict.
The waterway has effectively been closed to normal commercial shipping since the conflict intensified, although some crude has continued to move through alternative arrangements.
Two tankers reportedly hit sea mines
The supply outlook became more uncertain after Iran’s Revolutionary Guards said two oil tankers had struck sea mines and were disabled while attempting to pass through the Strait of Hormuz.
The incident highlights the vulnerability of oil shipments in the region and could further discourage tanker operators from using the waterway if military risks increase.
Analysts said ship-to-ship transfers have allowed some crude exports to continue despite the disruption. However, those remaining flows could quickly come under pressure if military strikes intensify.
Hamad Hussain, senior climate and commodities economist at Capital Economics, warned that continued military action could threaten these alternative supply routes and place additional upward pressure on crude prices.
US Energy Secretary Chris Wright said on Tuesday that around 17 million barrels of oil passed through the Strait of Hormuz on Monday.
According to Wright, this represented the highest volume of crude to transit the waterway since the conflict began reducing flows.
The figure suggests that, despite the severe disruption and security concerns, a substantial amount of oil is still reaching international markets.
