Brent Extends Rally as Trump Deadline Nears

Brent crude rose above $101 a barrel on Wednesday for the first time since May, driven by escalating US-Iran tensions and stronger Chinese oil demand. The US military said it had destroyed five Iranian tankers carrying crude following attempts to strike a US Navy warship with ballistic missiles. Iran, meanwhile, claimed to have attacked two American vessels and eight oil tankers in the Gulf, while warning shipping crews near Kuwaiti and Bahraini ports to abandon their vessels. The escalation has heightened concerns over further disruption to global oil supplies, particularly around the Strait of Hormuz. Iran-backed Houthi militants also targeted energy infrastructure in southern Saudi Arabia, including the 400,000-barrel-a-day Jazan refinery. Meanwhile, purchases from China supported prices for African, Canadian and Latin American crude as the country restocks its dwindling oil and fuel inventories after limiting imports of more expensive product this year due to the war in Iran.

Brent crude rose above $99 a barrel on Wednesday, reaching its highest level in nearly seven weeks and approaching the key $100 threshold after Iran said it had struck two American vessels and eight oil tankers in the Gulf. The escalation heightened concerns over further disruptions to global oil supplies. Tehran also launched ballistic missiles toward Jordan and warned vessels in the Persian Gulf, urging tanker crews near Kuwaiti and Bahraini ports to “immediately abandon their vessels.” The latest attacks followed US strikes on five Iranian tankers near Kharg Island, the Islamic Republic’s main oil export hub. Elsewhere, Iran-backed Houthi militants targeted energy infrastructure in southern Saudi Arabia, including the 400,000-barrel-a-day Jazan refinery. Meanwhile, stronger Chinese oil demand is lifting prices for African, Canadian and Latin American crude as disruptions in the Strait of Hormuz push refiners to seek alternative supplies from more distant markets.

Brent crude rose above $99 a barrel on Wednesday, reaching a near seven-week high and edging closer to the key $100 mark after the US struck several Iranian tankers near Kharg Island, a major crude export hub. The attacks heightened geopolitical tensions and raised concerns about further disruptions to global oil supplies. A US official said the strikes came in response to an attempted missile attack on a US warship. Tehran retaliated by launching ballistic missiles toward Jordan and warning vessels in the Persian Gulf, urging tanker crews near Kuwaiti and Bahraini ports to “immediately abandon their vessels.” Iran-backed Houthi militants also attacked energy infrastructure in southern Saudi Arabia, including the 400,000-barrel-a-day Jazan refinery. Meanwhile, stronger Chinese oil demand is pushing up prices for African, Canadian and Latin American crude as disruptions in the Strait of Hormuz force refiners to look farther afield for alternative supplies.