Crude oil jumped 4% to surpass $87 per barrel on Wednesday, its highest level in six weeks, as mounting tensions between the United States and Iran deepened fears of disruptions to global energy supplies. The rally came after an 11th consecutive night of US strikes on Iranian military facilities and operations aimed at safeguarding commercial shipping through the Strait of Hormuz.
US Secretary of State Marco Rubio stated that Washington remains open to a diplomatic resolution but accused Iran of failing to uphold prior commitments. He stressed that any future agreement must ensure freedom of navigation in the Strait of Hormuz and prevent Iran from developing nuclear weapons or supporting militant groups.
At the same time, renewed threats by Yemen’s Houthi rebels against shipping lanes in the Red Sea heightened concerns about additional disruptions to international oil flows. Further pressure on global energy markets came from attacks on the Caspian Pipeline Consortium terminal in the Black Sea, amplifying worries over supply security.
