Brent crude rises 1.80% to $93.10 on potential new US-Iran attacks

The price of Brent crude oil for August delivery climbed 1.80% to $93.10 per barrel on Wednesday, driven by renewed threats from U.S. President Donald Trump to launch further "hard" attacks on Iran. This escalation follows recent U.S. airstrikes in retaliation for the downing of an American helicopter over the Strait of Hormuz.

Trump stated his intention to attack Iran again with force, citing a "review" of Tehran's position on peace negotiations. The U.S. president made these remarks during an event at the White House, amid speculation about a potential breakdown in talks between the U.S. and Iran aimed at ending their conflict. Iran reportedly responded by targeting U.S. military installations across the Middle East, including in Jordan, Kuwait, and Bahrain, though Washington has denied these claims.

This latest escalation has fueled bullish sentiment among investors. With the ongoing military actions and stalled negotiations, the likelihood of a peace agreement and the subsequent reopening of the Strait of Hormuz, a critical chokepoint for global crude oil, appears diminished in the short term. The strait has been blocked since February 28.

Trump also claimed to have removed approximately 100 million barrels of oil from the Strait of Hormuz as part of a "secret operation" unknown to Iran. Fawad Razaqzada, a market analyst at StoneX, warned that the cooling of initial optimism and the new wave of attacks have caused crude prices to rebound. He predicted that prices could continue to rise, potentially nearing $100 per barrel, due to the absence of a resolution.