Brent Rises Above $93

Brent extended gains and rose more than 2% to $93 a barrel on Wednesday as traders weighed escalating tensions in the Middle East. President Trump vowed to attack Iran very hard again and said that Iran had taken too long to negotiate a deal and would now “have to pay the price”. The comments follow Iranian attacks on several Gulf nations, including Bahrain, Jordan, and Kuwait, after US “self-defense strikes” in response to the downing of an American helicopter. Traffic through the Strait of Hormuz remains significantly disrupted, with Iran blocking most shipping through the key waterway, while the US has imposed its own restrictions on Iranian ports. However, US Energy Secretary Wright said vessel traffic in the Gulf and oil exports through the Strait are rising despite ongoing disruptions. Meanwhile, EIA data showed US crude inventories fell by 7.228 million barrels last week, a seventh consecutive weekly decline and surpassing expectations for a 4 million barrel draw.

Brent rose about 2% to $92 a barrel on Wednesday as traders weighed escalating tensions in the Middle East. US President Donald Trump said Iran had taken too long to negotiate a deal and would now “have to pay the price” and that he is close to ordering strikes on Iran's plants and bridges. The comments follow Iranian attacks on several Gulf nations, including Bahrain, Jordan, and Kuwait, after US “self-defence strikes” in response to the downing of an American helicopter. Traffic through the Strait of Hormuz remains significantly disrupted, with Iran blocking most shipping through the key waterway, while the US has imposed its own restrictions on Iranian ports. However, US Energy Secretary Wright said vessel traffic in the Gulf and oil exports through the Strait are rising despite ongoing disruptions. Meanwhile, EIA data showed US crude inventories fell by 7.228 million barrels last week, a seventh consecutive weekly decline and surpassing expectations for a 4 million barrel draw.

Brent swung around $91 a barrel on Wednesday, after falling about 3% in the previous session and reversing earlier gains seen during Asian trading, as traders assess escalating tensions in the Middle East. Iran launched attacks on several Gulf nations, including Bahrain, Jordan, and Kuwait, following US “self-defence strikes” in response to the downing of an American helicopter. Traffic through the Strait of Hormuz remains significantly disrupted, with Iran blocking most shipping through the key waterway, while the US has imposed its own restrictions on Iranian ports. However, US Energy Secretary Chris Wright said vessel traffic in the Gulf and oil exports through the Strait are rising despite ongoing disruptions. Meanwhile, API data showed US crude inventories fell by 9.1 million barrels last week to their lowest level in four months, as buyers moved to replace supplies disrupted by tensions in the Persian Gulf.