Brent Extends Gains on Threat of More US Strikes

Brent climbed above $85 per barrel on Wednesday, advancing for a third consecutive session after President Donald Trump threatened additional military strikes on Iran after reinstating a US blockade against Tehran in the Strait of Hormuz. Trump said military operations would continue and warned that the US could target Iranian power plants and bridges next week unless Tehran returns to the negotiating table. Meanwhile, he dropped plans to impose a 20% fee on cargo transiting the Strait of Hormuz, saying any forgone revenue would be more than compensated by future investments from Gulf nations into the US. Oil prices have rallied this week as renewed tensions between Washington and Tehran heightened supply concerns, adding fresh uncertainty after Persian Gulf producers increased exports following the signing of the interim peace agreement.

Brent rose above $85 a barrel on Tuesday after the US military launched additional airstrikes against Iran, as Washington prepared to reimpose a blockade on the country's ports and coastal areas. Early in the session, oil prices softened from session-highs after President Donald Trump abandoned plans to impose a 20% fee on cargo passing through the Strait of Hormuz under US military protection. Trump said the expected revenue would be offset by future investments in the US. “I have decided to replace the 20% United States Reimbursement Fee with Trade and Investment Deals that the various Gulf States will be making into the United States,” Trump posted on social media, a day after announcing the fee. Meanwhile, tensions remained elevated with Iran’s Revolutionary Guard claiming attacks on two oil tankers transiting Hormuz without active tracking signals. The UAE’s ADNOC reported that two vessels were hit while crossing the strait.

Brent crude oil steadied above $83 per barrel on Tuesday after gaining more than 4% earlier in the session and following a 9.6% surge the previous day, after President Donald Trump abandoned plans to impose a 20% fee on cargo passing through the Strait of Hormuz under US military protection. Trump said the expected revenue would be offset by future investments in the US. “I have decided to replace the 20% United States Reimbursement Fee with Trade and Investment Deals that the various Gulf States will be making into the United States,” Trump posted on social media. Meanwhile, tensions remained elevated as the US carried out strikes against Iranian military targets, while Iran’s Revolutionary Guard claimed attacks on two oil tankers transiting Hormuz without active tracking signals. The UAE’s ADNOC also reported that two vessels were hit while crossing the strait.