Oil climbs above $94 as Hormuz tensions threaten supplies

Crude prices swung on Wednesday as US-Iran tensions raised worries about supply and transit through the Strait of Hormuz, Mettis Global reported. Brent crude futures edged up 0.02 per cent to $94.67 per barrel, while WTI gained $0.07, or 0.08 per cent. Developments came after a fresh set of American strikes on Iran, and Tehran reportedly retaliated with drone and missile attacks on US allies including Kuwait, Jordan and Bahrain, according to CNBC.

US Central Command said the strikes came after attempted assaults on commercial vessels and American personnel by Iran's Islamic Revolutionary Guard Corps. Separately, the UK Maritime Trade Operations Centre reported that three unidentified projectiles struck a tanker in the waterway on Monday. President Donald Trump stated that the US was not trying to push Tehran toward talks, and asserted it had almost total control over the strait.

Traders are watching how a prolonged conflict could affect crude flows and tanker traffic through the waterway, which carries a large share of global oil shipments. Edward Rosenberg of Strategy Shares said prices would stay elevated and volatile while the war continued, pointing to sanctions, stalled talks and doubts over Tehran's intentions.