Crude extends rally above $90.50 amid US-Iran hostilities risk
Crude oil rebounded to trade over $90.50 a barrel on Wednesday, extending a two-session rally to a six-week high. US-Iran tensions raised disruption risks for Middle East crude exports; Straits transit hit the highest level since late February.
Crude oil rebounded to trade over $90.50 a barrel on Wednesday, extending a two-session rally that lifted prices to a six-week high.
Renewed hostilities between the US and Iran rose of disruptions risks to Middle East crude exports.
The US completed a wave of strikes against Iran on Tuesday, according to US Central Command.
Iran’s state media reported that the Revolutionary Guard retaliated by targeting US military positions in Jordan, Kuwait, Bahrain, Iraq and the UAE.
US President Donald Trump also indicated he was not interested in negotiating with Iran.
Meanwhile, US Energy Secretary Chris Wright said more than 17 million barrels of oil transited the Strait of Hormuz on Monday, the highest level since the war began in late February.
Before the war, about 20 million barrels per day of crude and petroleum products passed through the strait.
However, tanker traffic remains below its 10-day average, with Kpler reporting only four tanker crossings on Tuesday.