Oil prices climb to $94.87 per barrel as Middle East tensions flare up

Oil prices rose on Wednesday as tensions in the Middle East intensified following US strikes on Qesham Island and Iran’s attack on US bases and assets in the region. West Texas Intermediate (WTI) crude rose $1.11, or 1.18%, to $94.87 per barrel, while Brent crude gained $1.03, or 1.07%, to $97.03 per barrel. Murban crude saw the largest increase, up $1.66, or 1.76%, to $96.09 per barrel. The market reacted to the latest escalation, which adds to concerns over supply disruptions in key shipping routes, particularly the Strait of Hormuz. Iran’s Islamic Revolutionary Guards Corps (IRGC) have claimed responsibility for missile and drone attacks on US targets in neighbouring countries, flaring up hostilities in the Gulf region. The group stated the strikes were carried out in response to an attack by the U. on a communication tower on Qeshm Island. The Revolutionary Guards said they targeted the US Fifth Fleet headquarters, airbases, and helicopters. Following earlier attacks on an Iranian oil tanker near the Strait of Hormuz, the Guards also reported striking a ship with missiles. Iranian media quoted the Revolutionary Guards as warning that the US would face consequences for undermining security in the strategic Strait of Hormuz. Centcom says US forces successfully defeated multiple Iranian ballistic missiles US forces successfully defeated multiple Iranian ballistic missiles and drones, and conducted self-defense strikes on Qeshm Island in response to attempted attacks by Iran across the Middle East, June 2. It claimed that Iran launched several ballistic missiles toward regional neighbors; however, all failed to hit their intended targets. Two Iranian missiles fired at Kuwait fell short or broke apart enroute, and three missiles launched at Bahrain were immediately intercepted by U.S. and Bahrain air defense forces.