Oil prices climbed for a third consecutive session during Asian trading on Wednesday as tensions between the United States and Iran continued to escalate.
The latest gains followed renewed US military action, fresh threats from President Donald Trump and the return of restrictions on Iranian shipping through the Strait of Hormuz.
Brent and WTI Reach One-Month Highs
At 02:53 ET, September Brent crude futures rose by 0.6% to $85.23 per barrel.
West Texas Intermediate crude futures gained 0.4% to trade at $79.67 per barrel.
Both oil benchmarks remained close to their highest levels in around one month.
Prices had already surged by almost 10% at the beginning of the week as investors reacted to growing concerns about energy supplies and shipping disruptions.
US Launches New Strikes Against Iran
The US military said it carried out another round of attacks early on Wednesday.
According to officials, the operation targeted Iranian capabilities allegedly used to attack commercial vessels travelling through the Strait of Hormuz.
The renewed military action increased fears that the conflict could widen and disrupt one of the world’s most important oil transport routes.
Trump Threatens Stronger Military Action
During a Fox News interview broadcast late on Tuesday, Trump warned that US attacks could intensify unless Tehran returned to negotiations.
He said Washington could target Iranian power stations and bridges as early as next week if no agreement was reached.
Trump added that American forces would continue striking military and coastal infrastructure.
However, he indicated that Iranian energy facilities would be targeted only as a final option.
US and Iran Remain in Contact
Despite the escalation, Trump said American officials were still communicating with Iranian representatives.
He insisted that Tehran had little choice but to return to negotiations.
The comments suggested that diplomatic discussions were continuing alongside military pressure.
However, neither side has shown clear signs of reducing its operations.
Strait of Hormuz Shipping Slows Sharply
The United States resumed its blockade of Iranian shipping on Tuesday evening.
Iran later announced that it had once again closed the Strait of Hormuz.
Commercial shipping through the waterway has slowed significantly following renewed attacks on cargo vessels and Gulf oil tankers.
The Strait of Hormuz is a critical route for global oil and liquefied natural gas exports. Therefore, any prolonged disruption could place further upward pressure on energy prices.
Trump Abandons Proposed Shipping Fee
Markets also assessed Trump’s decision to withdraw a proposed 20% fee on commercial cargo travelling through the Strait of Hormuz.
Several important US allies in the Gulf had reportedly urged the president to abandon the measure.
The proposal had raised concerns about higher transportation costs and additional pressure on global trade.
Although the fee was scrapped, military risks around the waterway continued to support oil prices.
US Crude Inventories Fall Less Than Expected
Data from the American Petroleum Institute showed that US crude oil inventories declined by 56,000 barrels during the previous week.
Analysts had expected a much larger reduction of approximately 2.7 million barrels.
The smaller-than-forecast draw suggested that domestic oil supplies remained relatively comfortable.
However, the report had a limited impact on prices because geopolitical tensions remained the main focus for traders.
EIA Inventory Report in Focus
Investors are now waiting for official inventory figures from the US Energy Information Administration.
The report is scheduled for release later on Wednesday.
A larger-than-expected decline in crude stockpiles could provide further support for oil prices.
In contrast, an unexpected increase in inventories could limit the rally.
For now, the oil market remains driven primarily by the US-Iran conflict, shipping disruptions in the Strait of Hormuz and concerns about potential damage to regional energy infrastructure.
