Brent Nears $96 as U.S. Strikes Iran for 12th Consecutive Night

The latest oil price rally showed no signs of slowing in early Asian trading on Thursday, with both benchmarks climbing to their highest levels in more than six weeks as the United States and Iran continued to exchange strikes.

Current Prices

At the time of writing:

• WTI crude: $88.05 per barrel, up 1.41% on the session
• Brent crude: $95.73 per barrel, up 1.76%

Escalating Military Action

The price rise came amid a series of escalating military actions:

• The U.S. launched its 12th consecutive wave of strikes against Iranian military targets.
• Yemen's Iran-backed Houthis intensified threats against oil shipping in the Red Sea.
• Iran's Revolutionary Guard Corps (IRGC) claimed an oil tanker had caught fire in the Strait of Hormuz.

According to U.S. Central Command (CENTCOM), American forces began a fresh round of strikes at 5:30 p.m. ET on Wednesday under orders from President Trump. The stated target was to degrade Iran's ability to threaten commercial shipping and civilian mariners operating in regional waters.

Strait of Hormuz Developments

This 12th night of strikes followed Iran's Revolutionary Guards' claim that an oil tanker had caught fire after attempting to transit a mined shipping route south of the Strait. Two additional tankers reportedly turned back. Iranian officials declared that the waterway was under their control and warned that vessels would not be permitted to transit without coordination with Tehran.

Red Sea and Houthi Threats

Meanwhile, the Houthis announced they had expanded their campaign against maritime traffic by targeting Saudi oil shipments through the Bab el-Mandeb Strait. The group claimed responsibility for attacks on two Saudi tankers, while maritime security reports indicated that the Saudi-flagged tanker Encelia had been struck in the Red Sea.

According to Iranian state media, the Houthis now claim to have forced at least nine ships to turn back from the Bab el-Mandeb Strait after announcing a naval blockade of Saudi Arabia.

Market Implications

The renewed threats to two of the world's most strategically important oil shipping chokepoints, combined with a complete lack of diplomatic progress, have reignited fears of significant supply disruptions in a market that has already burned through much of its reserves.

Bearish Data

The one piece of bearish news came from the U.S. Energy Information Administration (EIA), which reported that commercial crude inventories increased by 2 million barrels last week, defying analyst expectations for a draw of approximately 1.1 million barrels. The build reflected:

• Softer refinery activity
• Lower crude exports
• Stronger imports

Under normal circumstances, the inventory increase would have weighed on prices, but geopolitical risk continues to drive sentiment. Short of a diplomatic breakthrough, traders should brace for further volatility and a continued rise in oil prices.

By Josh Owens for Oilprice.com

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