Crude drifts near $90 as Iran strikes U.S. Gulf allies
U.S. West Texas Intermediate crude traded near $90.88 a barrel Wednesday as Iran’s Revolutionary Guard said it struck U.S. military positions in Kuwait, Jordan, Bahrain, Iraq and the UAE. The drift higher follows U.S. strikes on Iran’s IRGC and renews supply-risk fears around the Strait of Hormuz.
Key Takeaways
- WTI traded nearly 1% higher at $90.88; Brent rose about 1% to $95.57.
- U.S. Central Command said Tuesday’s strikes hit IRGC air defense, radar, maritime, mine-laying and communications sites.
- Iran’s Revolutionary Guard said it targeted U.S. positions in Jordan, Kuwait, Bahrain, Iraq and the UAE.
- U.S. crude has gained nearly 9% this week as markets price disruption risk back into Middle East exports.
- President Trump said he is not seeking talks, citing U.S. leverage over Hormuz and pressure on Iran’s economy.
Oil’s renewed climb matters because more than 17 million barrels moved through Hormuz on Monday—still below the roughly 20 million barrels per day that passed before the war began in late February—according to U.S. Energy Secretary Chris Wright. For more market and tech coverage, see our Future Tech & AI Wonders hub.
Why did crude drift higher again?
According to CNBC, Brent futures were up 1% to $95.57 a barrel while WTI traded nearly 1% higher at $90.88. The U.S. oil price has gained nearly 9% this week as traders reprice the risk of disrupted Middle East crude exports.
Yahoo Finance noted U.S. equity futures were mixed as the U.S.-Iran conflict escalated and inflation jitters returned. The Wall Street Journal’s Sept. 1 live coverage similarly flagged an oil surge after fresh Middle East strikes.
What strikes did the U.S. and Iran exchange?
U.S. Central Command said American forces completed a wave of strikes Tuesday against Iran’s Islamic Revolutionary Guard Corps. Targets included air defense sites, radar systems, maritime assets, mine-laying capabilities and communication sites, Centcom said.
Iran’s Revolutionary Guard said it retaliated against U.S. military positions in Jordan, Kuwait, Bahrain, Iraq and the United Arab Emirates, according to Iran’s state media. Fighting has broken out between the U.S. and Iran for the first time since July.
How does the Strait of Hormuz change the outlook?
Washington and Tehran are contesting control of the Strait of Hormuz, a chokepoint for global oil flows. Wright told CNBC that more than 17 million barrels of oil transited Hormuz on Monday, a record since the war began, versus about 20 million barrels per day before the conflict.
President Donald Trump said on Truth Social he is “not trying to force Iran to the bargaining table,” arguing the U.S. now has “almost total control of the Hormuz Strait” while Iran’s economy collapses. The U.S. has leaned on a naval blockade and expanded sanctions rather than fresh talks.
Until traffic through Hormuz looks durable again, the market’s risk premium—and this week’s price drift—are likely to stay in focus for energy traders and equity investors watching inflation.