Oil Prices Rise Again As US-Iran Conflict Threatens Global Supply | Dawn News English

Oil prices extended their gains on Wednesday, rising by around 1% as renewed tensions between the United States and Iran heightened concerns over global energy supplies. Brent crude futures gained $0.69, or 0.8%, to $85.42 a barrel, while US West Texas intermediate crude rose $0.73, or 0.9%, to $80.07 a barrel. The gains followed Tuesday's 2% rally, which pushed both benchmarks to their highest levels in a month after attacks further disrupted shipping through the Strait of Hormuz. Markets reacted after President Donald Trump reimposed an unenviable blockade on all Iranian ports. While Iran's Islamic Revolutionary Guard Corps warned it could shut all other export The US military also launched another round of strikes against Iranian targets, saying the operation was aimed at degrading Tehran's ability to threaten commercial shipping in the Strait of Hormuz. Analysts say investors are increasingly concerned that Iran could seek to disrupt traffic through the Bab al-Mandab Strait via its Houthi allies in Yemen, raising the prospect of simultaneous disruptions at two of the world's most important energy chokepoints. According to Goldman Sachs, Gulf oil exports had recovered to more than 80% of pre-war levels following a U.S.-Iran agreement in June, but have since fallen to below 50%, or about 11 million barrels per day, over the past week. The bank warned that Brent crude could climb above $110 a barrel in the fourth quarter if exports continue to be disruptive. Despite the rally, analysts say oil markets remain highly sensitive to developments on the ground, with prices likely to remain volatile as the conflict continues. And we're hitting them very hard and it'll continue and we'll see what happens but we're knocking out all of their offensive capability and we're controlling the straits