Oil prices rose on Wednesday as investors weighed the risk of a fresh escalation in the Gulf after the United States carried out strikes on Iranian military targets near the Strait of Hormuz.
Brent crude futures for August delivery gained 0.82% to $92.20 a barrel, while U.S. crude futures for July rose 0.74% to $88.89. Both benchmarks briefly climbed by more than 1% before surrendering some of their earlier gains as traders assessed whether the latest confrontation could place further strain on global energy supplies.
The move followed a U.S. military response to the downing of an Army Apache helicopter during a patrol near the strategic waterway. U.S. Central Command said the operation had been completed and described the strikes as a measured and defensive action following what it called Iranian aggression.
President Donald Trump had signalled that Washington would retaliate after confirming that the aircraft had been brought down. He said the two crew members were not injured.
The latest developments have renewed concerns over the Strait of Hormuz, which remains one of the world’s most important routes for oil shipments. Any prolonged disruption in the area could have wider consequences for fuel prices, transport costs, and inflation, particularly if commercial vessels face further delays or security risks.
Energy markets were already under pressure from supply losses across the Gulf. Rystad Energy said six producers in the region had taken a combined 11.8 million barrels per day offline, creating what it described as the most serious disruption to oil production in modern history.
The consultancy estimated that cumulative losses had reached 1 billion barrels. It also warned that each additional month of conflict could remove a further 350 million barrels from the market, adding to uncertainty over how quickly supply conditions can stabilise.