Crude Oil Surges as Middle East Shipping Risks Intensify

Global crude oil prices extended their rally on Wednesday, reaching their highest levels in nearly six weeks as rising tensions between the US and Iran fueled concerns over potential disruptions to oil supplies. Growing risks around key shipping routes in the Middle East have strengthened bullish sentiment, pushing both Brent and WTI crude sharply higher.

At the time of reporting, Brent crude climbed to $94.25 per barrel, gaining 3.56%, while WTI crude rose to $87.19 per barrel, up 3.38%. Both benchmarks touched their strongest levels since June 11.

The latest gains followed another round of military action involving the US and Iran, increasing fears that crude shipments could be affected. Market concerns also intensified after threats emerged against vessels transporting Saudi oil through the Bab el-Mandeb Strait, adding to existing uncertainty surrounding the Strait of Hormuz. These developments have prompted some tankers to reroute their voyages, raising concerns over the smooth flow of global oil exports.

Meanwhile, traders are awaiting official US oil inventory data for further market direction. Although preliminary figures indicated a rise in crude and distillate stocks, easing gasoline inventories and escalating geopolitical tensions continue to outweigh inventory data, keeping the market focused on supply risks.

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