Oil Prices Rise for a Third Consecutive Session
Oil prices moved higher for a third straight session on Wednesday as tensions between the United States and Iran continued to support the market.
The latest gains followed renewed U.S. military action against Iran and the resumption of restrictions on Iranian shipping through the Strait of Hormuz.
These developments kept concerns about potential supply disruptions firmly in focus.
Brent and WTI Trade Near One-Month Highs
At 07:28 ET, September Brent crude futures rose by 0.8% to $85.39 per barrel.
Meanwhile, West Texas Intermediate crude futures advanced by 0.6% to $79.82 per barrel.
Both oil benchmarks remained close to their highest levels in approximately one month. Prices had already surged by nearly 10% at the beginning of the week.
U.S. Launches New Strikes Against Iran
The U.S. military said it carried out a fresh round of strikes early on Wednesday.
The attacks were aimed at weakening Iranian capabilities allegedly used against commercial ships travelling through the Strait of Hormuz.
The renewed military action increased fears that the conflict could affect one of the world’s most important energy transport routes.
Trump Warns of Further Military Action
President Donald Trump said the United States would continue striking Iran unless Tehran returned to negotiations.
During an interview aired late Tuesday, Trump warned that U.S. forces could target power plants, bridges, and other infrastructure as early as next week if no agreement is reached.
He also said Washington would continue attacking Iranian military and coastal facilities.
However, Trump indicated that Iranian energy infrastructure would not be targeted for the time being.
Goldman Sachs Sees Near-Term Upside Risks
Goldman Sachs strategists said risks to their oil price forecast remain balanced over the longer term.
The bank currently forecasts Brent crude at $80 per barrel in the fourth quarter of 2026 and $75 per barrel in 2027.
However, the analysts said risks are tilted to the upside in the near term because of the growing possibility of further attacks on tankers and Middle Eastern energy infrastructure.
Brent Could Rise Above $110
Goldman Sachs said Brent crude could climb above $110 per barrel during the fourth quarter of 2026 if oil flows from the Gulf remain restricted.
In that scenario, global demand would need to absorb a larger share of the supply adjustment.
However, Brent could also fall into the $60 range by the end of the year if oil flows recover quickly and demand weakens due to high fuel prices.
U.S. Resumes Maritime Blockade
The latest oil price gains came after the United States formally resumed its maritime blockade on Iranian shipping on Tuesday evening.
Trump later withdrew a proposal to impose a 20% transit fee on cargo passing through the Strait of Hormuz.
The proposal had faced opposition from several important U.S. allies in the Gulf region.
Strait of Hormuz Traffic Slows
Ships continued to travel through the Strait of Hormuz despite recent attacks and heightened security risks.
However, maritime activity slowed as the conflict intensified.
The Strait remains one of the most important routes for global energy markets, with roughly one-fifth of worldwide oil consumption passing through the waterway.
Any prolonged disruption could have a significant impact on global crude supply and prices.
U.S. Crude Inventories Fall Less Than Expected
Separate data from the American Petroleum Institute showed that U.S. crude oil inventories declined by approximately 600,000 barrels last week.
The result was smaller than the expected draw of around 2.7 million barrels.
The weaker inventory decline suggested that domestic demand may not have been as strong as analysts had anticipated.
Oil Market Remains Focused on Supply Risks
Oil prices are currently being supported by military escalation, shipping concerns, and the possibility of further disruptions in the Middle East.
However, weaker-than-expected U.S. inventory data and uncertainty about global demand may limit additional gains.
Traders will continue to monitor developments involving Iran, the Strait of Hormuz, U.S. military action, and future crude inventory reports.
