FX.co ★ Brent Extends Gains on Fresh US Strikes

Brent crude rose above $85 a barrel on Wednesday, extending its gains for a third straight session after the US launched a new round of strikes on Iran and reinstated a naval blockade of Iranian ports near the Strait of Hormuz. Over a seven-hour operation, US forces hit dozens of military targets along Iran’s coastline and close to the strategic chokepoint in a bid to curb Tehran’s capacity to disrupt traffic through Hormuz. At the same time, President Donald Trump dropped plans to levy a 20% fee on cargo passing through the strait, arguing that any foregone revenue would be more than compensated by future investment from Gulf states into the US. Crude prices have climbed sharply this week as renewed tensions between Washington and Tehran fuel fresh supply concerns, adding another layer of uncertainty just as Persian Gulf producers had stepped up exports following the signing of the interim peace agreement.