Oil prices rise as Iran and US clash in Strait of Hormuz

Oil prices saw an increase on Wednesday, with Brent crude reaching its highest point since June 12 and West Texas Intermediate hitting its highest since June 15. The rise followed the U.S. reimposing a naval blockade on all Iranian ports and Iran launching retaliatory strikes on U.S. infrastructure in the region.

Brent crude futures climbed $1.46, or 1.72%, to $86.19 a barrel by 0029 GMT, while WTI futures were up $1.11, or 1.4%, to $80.40 a barrel. On Tuesday, oil prices had already closed up 2% to a one-month high due to attacks that deepened supply disruptions in the Strait of Hormuz. This vital waterway transits approximately one-fifth of the world's oil and liquefied natural gas.

Early Wednesday, the U.S. military announced a fresh round of strikes aimed at degrading Iranian capabilities used to attack commercial shipping in the Strait of Hormuz. Tehran claimed it had closed the strait again following renewed hostilities between Iran and the U.S. last week, which frayed a fragile truce established in June after months of fighting.

Iran's army reported launching drone attacks against U.S. positions at Jordan's Azraq base early Wednesday. The Islamic Revolutionary Guard Corps also claimed to have targeted weapons and storage facilities in Bahrain and Kuwait, though Reuters could not immediately verify these reports. The Pentagon had no immediate comment.

The recent escalation over the past few days has intensified doubts about a memorandum of understanding signed last month, which was intended to lead to a permanent halt to the war that has engulfed Iran's neighbors.

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to continue degrading Iranian capabilities used to attack commercial shipping in the Strait of Hormuz.