Oil gains as shipping security concerns return to the Strait of Hormuz

Oil prices extended their gains on Wednesday after US President Donald Trump reimposed a naval blockade on all Iranian ports and Tehran launched strikes on US infrastructure in the region.

The renewed confrontation has brought the Strait of Hormuz back into focus, reigniting concerns over the security of global oil and liquefied natural gas (LNG) supplies from the Gulf.

Brent crude futures rose 0.96% to $85.54 a barrel.

Meanwhile, West Texas Intermediate (WTI) crude futures gained 0.66% to $79.98 a barrel.

Oil builds on the previous session's rally

Wednesday's advance followed strong gains in the previous session.

On Tuesday, oil prices settled around 2% higher, reaching their highest levels in nearly a month as geopolitical tensions intensified.

The latest attacks in the region added to an already disrupted supply environment in the Strait of Hormuz.

Before the beginning of the US-Israeli war on Iran, roughly one-fifth of the world's oil and liquefied natural gas moved through the strategic waterway.

The renewed military confrontation has once again shifted market attention toward the possibility of further disruptions to energy exports from the Gulf.

Markets assess broader supply risks

The latest price gains reflect more than immediate concerns over military exchanges.

Market participants are also assessing the potential impact of a prolonged confrontation on global energy supplies.

Markets are watching whether the conflict will disrupt shipping through the Strait of Hormuz.

They also fear delays in regional oil production and greater risks to energy infrastructure.

The uncertainty has prompted traders to rebuild a geopolitical risk premium into crude prices.

Each new military development is being closely monitored for its potential impact on shipping routes, export facilities, and global energy consumers.

With the Strait of Hormuz serving as one of the world's most important energy transit corridors, any disruption to vessel movements could have implications well beyond the Middle East.

WTI consolidates near one-month high

While both major oil benchmarks remained higher, WTI traded within a relatively narrow range during the Asian session on Wednesday.

The US benchmark consolidated its weekly gains after reaching a nearly one-month peak in the previous session.

WTI was trading just above the $79.00 mark and remained largely unchanged on the day as investors awaited further developments surrounding the Middle East crisis.

Market participants continued to monitor the evolving geopolitical situation, with future price direction expected to depend on whether tensions escalate further or show signs of easing.

For now, renewed uncertainty surrounding regional security and energy infrastructure has kept oil markets supported, with traders closely watching developments that could influence global supply flows and shipping activity through the Strait of Hormuz.