Oil prices soar to $96 as US-Iran tensions escalate
What's the story
Oil prices climbed on Wednesday amid escalating Middle East tensions following recent US strikes on Iranian targets and reported retaliatory action by Tehran against US allies. November Brent crude futures rose 0.92% to $95.52 per barrel after paring earlier gains, while October US West Texas Intermediate (WTI) advanced 0.6% to $90.76 per barrel.
Presidential remarks
US holds the upper hand: Trump
US President Donald Trump dismissed efforts to negotiate with Tehran, writing on Truth Social that he is "not trying to force Iran to the bargaining table."
Trump emphasized that the US holds the upper hand, pointing to "almost total control of the Hormuz Strait" alongside Iran's "totally collapsing" economy.
In response to the latest American strikes, Iran reportedly launched drone and missile barrages targeting Kuwait, Jordan, and Bahrain.
Export resilience
Oil exports continue to flow through Strait of Hormuz
Despite the risks, oil exports have continued to flow through the Strait of Hormuz. Many tankers have turned off their transponders to avoid detection.
Gulf producers such as the UAE, Saudi Arabia, Kuwait, and Iraq are still managing to export barrels from this region.
However, UK Maritime Trade Operations (UKMTO) has warned of a continued threat to vessels transiting this area after a tanker was struck by three unidentified projectiles while leaving the Strait near Oman on Monday.
Refinery recovery
ADNOC resumes full operations at Ruwais refinery
In the midst of these tensions, Abu Dhabi National Oil Company (ADNOC) has resumed full operations at its Ruwais refinery after earlier war-related damage.
The plant, one of the largest refineries in the world, had been running at full capacity for about a month now.
This development comes as a relief amid fears over potential disruptions to energy supplies due to ongoing geopolitical conflicts.