Khaberni - Oil prices rose more than a dollar on Wednesday as the American-Israeli war on Iran disrupted production in the Middle East and halted exports from the region.
Brent crude increased by $1.11, or 1.4 percent, to $82.53 per barrel, after reaching its highest closing level since January 2025 on Tuesday. U.S. West Texas Intermediate crude also rose 79 cents, or 1.1 percent, to $75.37, after recording its highest settlement level since June.
Israeli and American forces launched attacks on targets across Iran on Tuesday, prompting Iran to attack the energy infrastructure in a region that produces just under a third of the global oil output.
Officials stated that Iraq, the second-largest crude oil producer in the Organization of the Petroleum Exporting Countries (OPEC), cut its production by about 1.5 million barrels per day, roughly half of its output, due to limited storage capacity and lack of export outlets.
They added that the country might have to stop its production of about three million barrels per day within days if exports are not resumed.
Iran also targeted oil tankers in the Strait of Hormuz, through which about a fifth of the world's oil and liquefied natural gas supplies pass. Traffic remained essentially halted for the fourth consecutive day after Iran attacked five ships.
However, comments by U.S. President Donald Trump that the U.S. Navy may begin escorting oil tankers through the Strait of Hormuz if necessary helped limit the rise in crude prices.
Trump said he had ordered the U.S. International Development Finance Corporation to provide political risk insurance and financial guarantees for maritime trade passing through the Gulf.
But shipowners and analysts questioned whether the military escorts and insurance support would be sufficient to restore confidence.
Nations and companies began looking for alternative routes and supplies. India and Indonesia said they were seeking other energy supplies, while some Chinese refineries shut down or submitted maintenance plans.
Sources mentioned that Saudi Aramco, the oil giant, is seeking to reroute some of its crude oil exports to the Red Sea to avoid the Strait of Hormuz.
In the United States, market sources citing figures from the American Petroleum Institute reported that crude oil inventories rose by 5.6 million barrels last week, significantly exceeding analysts' expectations of 2.3 million barrels. Official numbers from the U.S. government are expected later today.
