Market Overview

Oil prices extended their rally in Asian trading on Wednesday, with Brent crude futures up 1.4% to $99.32 per barrel and West Texas Intermediate (WTI) up 1.5% to $94.44 per barrel as of 21:32 ET (01:32 GMT). Both benchmarks are at their highest levels in weeks, and WTI marked its seventh consecutive day of gains.

Geopolitical Drivers

The price gains followed a U.S. military announcement that it had destroyed five Iranian oil tankers after Iranian missile attacks on U.S. naval assets. Iran subsequently launched missiles at U.S. targets in Jordan and warned Gulf states, including Kuwait and Bahrain, against supporting U.S. forces. The escalation also followed attacks by Iran‑backed Houthi forces on Saudi Arabia, which hit energy and economic facilities in several southern cities and injured more than 70 people. Saudi authorities reported fires at energy sites, notably the Jazan refinery, though the full extent of disruption remained unclear.

U.S. Secretary of State Marco Rubio warned Tehran that Washington would continue striking Iranian oil tankers in retaliation for attempted attacks on U.S. warships. The incidents have intensified already severe disruptions around the Strait of Hormuz, a critical conduit for global oil flows. Shipping traffic through the waterway slowed sharply after Iran threatened retaliation for further U.S. attacks, and Iran has announced plans to establish a maritime exclusion zone around the strait. While flows through Hormuz have dropped, some shipments continue, and Gulf producers are using alternative routes and ports.

Price Outlook and Inflation Concerns

Despite the heightened security environment, continued oil flow has prevented Brent from decisively breaking the $100 barrier. Goldman Sachs warned that crude could rise to as much as $120 per barrel if attacks on Middle Eastern vessels intensify and shipping disruptions worsen. The rally is also reviving concerns over inflation and interest‑rate pressures.

Key Figures

  • Brent crude futures (Nov expiry): $99.32 per barrel, +1.4%.
  • WTI crude futures (Nov expiry): $94.44 per barrel, +1.5%.
  • Five Iranian oil tankers destroyed by U.S. forces.
  • More than 70 injuries reported from Houthi attacks on Saudi facilities.
  • Seventh consecutive day of gains for WTI.