Crude oil climbed back above $90.50 a barrel on Wednesday, extending a two-day rally that pushed prices to a six-week high. The advance was driven by heightened concerns over potential disruptions to Middle Eastern crude exports amid renewed hostilities between the United States and Iran.
The US Central Command said on Tuesday that the United States had completed a series of strikes against Iran. In response, Iran’s state media reported that the Revolutionary Guard targeted US military positions in Jordan, Kuwait, Bahrain, Iraq, and the UAE. US President Donald Trump also signaled that he is not interested in entering negotiations with Tehran.
At the same time, US Energy Secretary Chris Wright noted that more than 17 million barrels of oil passed through the Strait of Hormuz on Monday, the highest daily volume since the war began in late February. Prior to the conflict, about 20 million barrels per day of crude and petroleum products typically transited the key chokepoint.
Despite Monday’s surge, tanker flows remain below their 10-day average. Data provider Kpler reported that only four tankers crossed the Strait of Hormuz on Tuesday.