Oil up nearly 1% as US and Iran trade fresh strikes

Business Recorder reported that oil prices climbed close to 1% in early trade on Wednesday. The gains followed fresh US airstrikes on targets in Iran and an Iranian response, the sharpest escalation between the two sides in weeks. Brent crude rose 87 cents, or 0.92%, to $95.52 a barrel, while WTI added 80 cents, or 0.89%, to $91.02.

Both contracts had jumped more than $4 on Tuesday, with Brent posting its biggest gain since July 24 and WTI its largest since July 23. US Central Command said the strikes answered recent attempted IRGC attacks on merchant vessels in the Strait of Hormuz and on American personnel in the region. The IRGC however argued that the American attacks would further limit traffic through the strait, which Iran has effectively shut to commercial vessels. The waterway once handled roughly one-fifth of global oil consumption before the conflict began.

The IRGC said it had fired ballistic missiles at an American base in Jordan. Jordan's army said its air defences brought down 10 of the 13 ballistic missiles which crossed its airspace, while two US officials reported no American casualties so far. Separately, US crude stocks fell 2.6 million barrels for the week to August 28, and distillate inventories, covering diesel and heating oil, declined by 265,000 barrels, according to American Petroleum Institute data cited by market sources.