Crude oil extended gains on Wednesday, climbing more than 7% to around $85 a barrel and breaking a three-day losing streak as tensions in the Middle East escalated. US President Trump stated that the United States would strike Iran hard in response to an attempted surprise attack on American forces. His comments followed a US military announcement that it had successfully intercepted what it described as a surprise Iranian attack targeting US troops stationed across the region.
At the same time, Iran-backed militias in Iraq launched drones at oil facilities in Saudi Arabia’s Eastern Province for a second straight day. Adding to market concerns, reports indicated that Yemen’s Houthi militants were considering imposing transit fees on vessels passing through the Red Sea, raising fears over higher shipping costs and potential disruptions to energy flows. Iran has also sought to introduce similar charges on ships navigating the Strait of Hormuz.
In the United States, data from the American Petroleum Institute (API) showed that crude oil inventories declined by 3.3 million barrels last week, underscoring continued tightness in global oil supplies.
