Oil prices were little changed on Wednesday after climbing to their highest levels in more than a month, as traders weighed potential supply disruptions following renewed US-Iran strikes against signs that crude continues to reach the market.
Brent crude futures rose 11 cents, or 0.12%, to $94.76 a barrel, while US West Texas Intermediate (WTI) gained one cent, or 0.04%, to $90.26. Earlier, Brent and WTI touched $97.04 and $92.29 respectively, their highest levels since July 24.
“The market is facing a binary risk,” said Saxo Bank’s head of commodity strategy Ole Hansen, warning that progress towards a deal could trigger a $5 price drop, while further escalation could send prices higher.
The US and Iran returned to a war footing after their biggest exchange of fire in weeks, with Washington threatening further strikes.
Iran’s Revolutionary Guards said two oil tankers hit sea mines while attempting to cross the Strait of Hormuz, which carried about one-fifth of global oil consumption before the conflict and is now effectively closed to commercial shipping.
Capital Economics economist Hamad Hussain said ship-to-ship transfers have allowed some exports to continue, but military strikes could disrupt them. US Energy Secretary Chris Wright said 17 million barrels crossed the strait on Monday, the highest flow since the war reduced shipments.
Hussain warned Brent could exceed $100 if disruption worsens. Meanwhile, Russia launched a “massive” missile and drone attack on energy infrastructure in Ukraine’s Odesa region, Ukrenergo said.
