Oil prices climbed again on Wednesday as fresh violence in the Strait of Hormuz rattled markets and raised new concerns about global supply.
Prices had dipped earlier in the day, but quickly reversed course after reports that at least three container ships were hit by gunfire while passing through the vital waterway.
The situation escalated further when Iran’s Revolutionary Guard reportedly seized two vessels, accusing them of violating maritime rules.
By midday, Brent crude had risen to just over $100 a barrel, while U.S. West Texas Intermediate also posted solid gains.
Both benchmarks had already surged the previous day, showing just how sensitive markets are to developments in the region.
The renewed tension comes despite Donald Trump announcing an extension of the ceasefire with Iran.
However, the move appears shaky at best. Planned talks in Pakistan didn’t happen, and it’s still unclear whether all sides including Iran and Israel are on board with the truce.
For traders, the bigger worry is the Strait of Hormuz itself. Before the conflict began, roughly a fifth of the world’s oil and gas passed through the narrow channel.
Now, with ships being attacked, seized, or turned away, that flow is under serious threat.
There are other pressures building too.
In Europe, Russia says it will reroute some oil supplies that were meant for Germany, adding another layer of uncertainty to already strained energy markets.
At the same time, data from the U.S. suggests crude and fuel stockpiles are shrinking, a sign that demand remains strong.
Put together, it’s a volatile mix: geopolitical tension, tight supply, and nervous markets.
And until there’s real progress in easing the conflict, oil prices are likely to stay on edge.
