Key Takeaways
- Brent crude futures rose to $91.51 after U.S. forces began new strikes on Iranian targets.
- Kuwait reported attacks by Iranian drones, raising fears of further disruptions in global energy supplies.
- The U.S. military's latest strikes come amid ongoing tensions between the U.S. and Iran.
Oil prices have risen slightly following a series of U.S. military strikes on Iranian targets, with Brent crude futures climbing to $91.51 per barrel in early trading on Wednesday. This increase follows a five-week high reached on Tuesday after the United States launched its latest round of attacks.
According to reports, the U.S. forces began their 11th consecutive night of strikes against Iranian military targets late on Tuesday, with the first attacks occurring shortly before midnight local time in the U.S., or early Wednesday morning in Iran. These actions come amidst heightened tensions between the two nations, with Iran retaliating by attacking U.S. facilities in Bahrain, Kuwait, and Jordan.
Kuwait has also reported that its air defenses intercepted Iranian drones on Wednesday, adding to concerns about potential disruptions to global energy supplies. The constant trading of strikes has raised fears among market analysts that further supply disruptions could occur, particularly as Yemen’s Iran-aligned Houthis have threatened to target Saudi oil vessels in the Bab el-Mandeb Strait and announced a naval blockade against Saudi Arabia.
The strategic importance of the Bab el-Mandeb waterway has increased as traffic through the Strait of Hormuz has declined sharply since a ceasefire between the U.S. and Iran collapsed earlier this month. This waterway serves as an increasingly critical route for Saudi crude exports, making it a focal point in ongoing geopolitical tensions.
In related developments, Pete Hegseth, the U.S. defense secretary, disclosed that the country’s war in Iran has cost $37.5 billion so far, marking an increase of nearly $8 billion since the last public estimate. This financial toll underscores the significant economic impact of the conflict on both sides.
Market data from the American Petroleum Institute showed a mixed picture for U.S. inventories: crude and distillate stocks rose last week, while gasoline stockpiles fell. These figures are expected to be further analyzed by the U.S. Energy Information Administration later in the day.
