Oil Prices Hit Five-Week High At $92 As US-Iran Conflict Fuels Supply Concerns

Global crude oil prices extended gains in early Asian trading on Wednesday as the conflict between the United States and Iran showed no signs of easing, raising fresh concerns over energy supply disruptions.

Brent crude was trading at $92.44 per barrel, up 1.57%, while US West Texas Intermediate (WTI) crude rose 1.39% to $85.51 per barrel.

Both benchmarks reached five-week highs after steadily recovering from their lows recorded during the July 4 weekend.

The latest rally was triggered by another round of US military operations against Iranian targets, marking the 11th consecutive night of strikes.

According to the US Central Command (CENTCOM), American forces targeted Iranian military facilities, maritime assets, aircraft hangars, drone storage sites and logistics infrastructure to reduce Tehran’s ability to threaten commercial shipping.

CENTCOM said Iran has attacked more than 30 commercial vessels over the past three months but maintained that the Strait of Hormuz remains open for international shipping.

However, oil markets and shipping insurers remain concerned that continued attacks could disrupt one of the world’s most important energy transit routes.

The latest US strikes followed reports that Kuwait intercepted Iranian drones, adding to a series of attacks by Iran against US allies in the region.

Market attention has also shifted towards the Red Sea, where Yemen’s Iran-backed Houthi group has threatened to target vessels carrying Saudi crude through the Bab el-Mandeb Strait.

The route has become increasingly important as Gulf producers seek alternatives amid concerns over tanker movement through the Strait of Hormuz.

Three Saudi oil tankers reportedly changed course in the Red Sea after the Houthis announced a blockade on Saudi oil shipments through the Bab el-Mandeb route, highlighting growing risks for global energy trade.

Diplomatic efforts have shown limited progress, with US President Donald Trump indicating that military operations could intensify and stating that Washington currently has no interest in restarting negotiations.