Oil Edges Higher on US-Iran Uncertainty

Crude oil climbed toward $85 per barrel on Wednesday, hovering near six-week highs as supply risks intensified across several major export routes even beyond the Middle East. President Donald Trump dismissed the likelihood of imminent talks with Iran while warning of additional strikes and pledging retaliation if Tehran-backed Houthi rebels in Yemen disrupted shipping through the Red Sea. The Red Sea has become a vital export corridor for Saudi Arabia during the conflict, enabling the kingdom to reroute part of its crude exports through pipelines and reduce reliance on the Strait of Hormuz. Meanwhile, a Kuwaiti tanker carrying oil products was struck in Hormuz, underscoring persistent threats to maritime traffic. Outside the region, traders are also monitoring a series of attacks on the Caspian Pipeline Consortium terminal along Russia’s Black Sea coast, a key export hub for most of Kazakhstan’s crude.

Crude oil climbed 2.6% to around $84.7 per barrel, the highest since June 12, extending gains for a third straight session as supply concerns intensified across several key export routes. Markets continued to monitor the conflict between the US and Iran after Washington carried out a 10th consecutive day of strikes and President Trump vowed Tehran "will pay" for attacks that killed American soldiers. Another tanker carrying oil products was reportedly struck near the Strait of Hormuz, highlighting ongoing risks to shipping. Meanwhile, Yemen's Houthi militants threatened to block Saudi maritime traffic in the Red Sea, prompting at least one Saudi crude tanker to reverse course. Beyond the Middle East, attacks on the Caspian Pipeline Consortium terminal on Russia's Black Sea coast also disrupted exports from Kazakhstan, one of the world's largest crude suppliers. Saudi Arabia said it would take all necessary measures to safeguard its vessels in accordance with international law.

Crude oil rose above $83 per barrel on Tuesday after recovering from earlier losses, as traders balanced escalating conflict in the Middle East against renewed diplomatic efforts. The US carried out a 10th consecutive day of strikes after President Donald Trump vowed Iran "will pay" for attacks that killed American soldiers, while Tehran responded with missile and drone strikes targeting Kuwait. At the same time, hopes for de-escalation persisted after Iran confirmed it had received mediation proposals and reports of discussions over a possible 10-day ceasefire. Oil prices have remained highly volatile as markets react to shifting prospects for further conflict or renewed negotiations. Adding to supply concerns, Yemen's Houthi movement threatened to block Saudi maritime traffic in the Red Sea, a key export route that allows the kingdom to bypass the Strait of Hormuz. Saudi Arabia said it would take all necessary measures to protect its shipping in line with international law.