Global oil prices rallied more than 7% on Wednesday as renewed military action in the Middle East intensified concerns over supply disruptions. Brent crude climbed to $90.37 per barrel, while US West Texas Intermediate rose to $84.93, following strikes involving the United States, Saudi Arabia, and Iran-backed groups. The market also drew support from industry data indicating a 3.3 million barrel decline in US crude inventories.
Diplomatic efforts to resolve the impasse at the Strait of Hormuz have stalled after Iran rejected a proposal for joint management of the waterway. Shipping activity remains heavily restricted in the region, while Houthi militants in Yemen are reportedly considering imposing charges on commercial vessels in the southern Red Sea. China has engaged in direct talks with the group to secure safe passage for its oil tankers.
Analysts expect oil prices to remain volatile, likely fluctuating between $80 and $100 per barrel as the conflict continues. Experts suggest that even if regional tensions de-escalate, the ongoing disruption to shipping routes will likely maintain a price floor of approximately $80 per barrel. Market participants are now awaiting official inventory data from the Energy Information Administration to further gauge supply trends.
0Likes
0Dislikes
