Oil Prices Hit One-Month High as U.S.-Iran Tensions Intensify

Oil prices rose for a third straight day during Asian trading, reaching their highest levels in about a month as escalating geopolitical tensions between the United States and Iran stoked fears of significant supply disruptions.

International benchmark Brent crude futures for September delivery climbed 1.7% to $86.15 per barrel, while U.S. benchmark West Texas Intermediate (WTI) crude futures advanced 1.3% to $80.34 per barrel. Both contracts have surged by nearly 10% since the beginning of the week, according to market data.

Geopolitical Risk Premium Grows

The rally gained momentum after U.S. President Donald Trump threatened to intensify military strikes against Iran unless Tehran returns to negotiations. In a Fox News interview aired late Tuesday, Trump warned that Washington could target Iran's power plants and bridges next week if a deal is not reached.

Adding to supply concerns, the U.S. resumed its blockade of Iranian shipping through the Strait of Hormuz on Tuesday evening. The strait is a critical chokepoint for global oil transit, and the renewed conflict has already sharply slowed shipping activity in the region following attacks on commercial vessels.

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Market Weighs Inventory Data

While geopolitical fears dominated sentiment, traders also assessed the latest U.S. inventory data. The American Petroleum Institute (API) reported on Tuesday that U.S. crude stockpiles fell by a modest 56,000 barrels last week.

This figure was significantly smaller than the 2.7 million barrel draw that analysts had expected, a development that would typically exert downward pressure on prices. Investors are now awaiting official inventory data from the U.S. Energy Information Administration (EIA) later on Wednesday for a clearer picture of domestic demand and supply fundamentals.