Oil Holds Steady as U.S.-Iran Conflict Deepens

Oil prices were broadly unchanged on Wednesday after an earlier run to more than one-month highs, as markets weighed intensifying conflict in the Middle East against evidence that crude was still reaching buyers. The move left Brent near levels last seen almost six weeks ago and kept attention on the flow of barrels through a key shipping lane.

Strait of Hormuz back in focus

The latest price action reflects the market’s balancing act: geopolitical risk is pushing up the premium, while actual shipments have not been fully choked off. Brent crude futures rose 0.3% to $94.96 a barrel, while U.S. West Texas Intermediate edged to $90.28. WTI gave back some of its earlier gains as traders saw signs that supply was continuing to move into the market.

U.S. Energy Secretary Chris Wright said 17 million barrels of oil passed through the Strait of Hormuz on Monday, the highest level of flow through the waterway since the war between Iran and Israel cut shipments. The figure underlines why the strait matters so much for global energy markets: even when tensions rise, a large share of seaborne crude still depends on that route. Any prolonged disruption would quickly feed into freight, insurance and crude pricing.

Attacks widen the geopolitical risk premium

Fighting escalated further after Tehran launched missile and drone attacks on sites linked to the U.S. in Bahrain, Jordan and Kuwait. The strikes came after President Donald Trump warned that any retaliation would bring a far stronger U.S. response, while U.S. Central Command said it had carried out another round of attacks on Iranian Revolutionary Guard Corps targets. The command said those strikes were tied to Tehran’s efforts to mine the Strait of Hormuz and to an earlier attack on a U.S. military base.

The broader market backdrop also included comments from Washington about supply alternatives. Wright said oil agreements expected in Caracas could lift Venezuela’s production by more than two times over the next few years. Separately, U.S. Treasury Secretary Scott Bessent told a G20 finance ministers’ meeting that the Strait of Hormuz would be bypassed within two years, a view that points to longer-term efforts to reduce dependence on the chokepoint.

For now, however, traders remain focused on near-term risk. Prices are being driven by the possibility of further strikes, the chance of retaliation, and the vulnerability of tanker traffic in one of the world’s most important energy corridors. That has kept crude supported even as actual flows through the strait have so far remained substantial.

This article is not investment advice and recommends no asset, level or direction; a single session's move is not evidence of a trend. For background see Markets, Bear Market, BIST 100, and for terms the finance glossary.