Brent crude futures climbed above $95 a barrel Wednesday, hitting their highest level in six weeks as tensions between the United States and Iran intensified sharply.
U.S. West Texas Intermediate crude also surged, reaching $88.10 a barrel before pulling back modestly during later trading sessions.
Both benchmarks marked their highest levels since June 11 and were on track to post a fourth consecutive session of gains.
The rally followed the 11th consecutive night of U.S. military strikes against Iran, raising fears of a prolonged and widening conflict across the Middle East.
President Donald Trump said the prospect appeared dim for a near-term breakthrough in negotiations with Iran, threatening broader military action including possible strikes on the suspected Pickaxe Mountain nuclear facility.
Trump claimed Iran was “desperate to meet” for talks but said the U.S. was not interested, instead threatening to accelerate the war with a bunker-busting attack on Iranian nuclear facilities.
Iran’s Khatam al-Anbiya central military command responded forcefully, with Iran’s state-run media IRNA stating: “all U.S. assets, along with those of its allies and backers, will be subject to a decisive strike.”
Senior Israeli officials confirmed that Tehran’s warning was also directed at Israel, which is preparing for the possibility it may be drawn into the conflict if Trump expands U.S. strikes.
Israeli officials said the country was proceeding cautiously to avoid accusations of pushing Washington into a wider war, but had long-standing plans prepared to respond broadly if attacked by Iran.
Houthi rebels compounded the market pressure by declaring a maritime embargo against Saudi Arabia, forcing oil tankers carrying millions of barrels bound for China and India to reverse course in the Red Sea.
The dual threat to both the Strait of Hormuz and the Red Sea shipping corridors deepened concerns among traders about the reliability of global crude supply chains in the coming months.
Goldman Sachs warned that Brent crude could rally beyond $120 a barrel by the fourth quarter if supply disruptions through the Strait of Hormuz and Red Sea persist, a scenario that could reverberate through global energy markets.
Brent crude’s move above $95 marks a significant psychological threshold for energy traders, with sustained conflict raising the prospect of even sharper price spikes if key shipping routes face prolonged disruption.
