US-Iran war: Oil prices extended their gains for a third consecutive session on Wednesday, 15 July, after President Donald Trump warned of additional strikes on Iran, just hours after the US reinstated its blockade of Iranian shipping through the Strait of Hormuz.
Brent crude settled at its highest level since June 12, while West Texas Intermediate (WTI) reached its strongest close since June 15 before advancing further in early Wednesday trading.
Brent crude was up $1.46, or 1.72%, at $86.19 per barrel, while WTI gained $1.11, or 1.4%, to trade at $80.40 per barrel.
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US President Donald Trump was quoted as saying by Fox News that military strikes on Iran would continue and warned that the US could target power plants and bridges next week unless Tehran returns to the negotiating table.
The US also reinstated its blockade at 4 p.m. Washington time, an hour after American forces carried out fresh strikes on Iranian targets aimed at weakening the country’s ability to attack commercial vessels in the Strait of Hormuz. However, Trump later reversed his earlier proposal to impose a 20% fee on cargo shipments passing through the strategic waterway.
The decision to withdraw the proposed levy offered some relief to the shipping industry, which had been rattled by the collapse of the US-Iran ceasefire and fears of further disruptions in the Strait of Hormuz—a vital energy corridor that handles around one-fifth of the world’s crude oil and liquefied natural gas trade.
The move also underscored the difficult balancing act facing Trump as tensions with Iran intensify while Tehran maintains its control over the waterway, keeping upward pressure on oil prices.
Crude oil prices have surged in recent days as renewed hostilities in the region, including attacks on oil tankers and Gulf nations such as Kuwait, have severely disrupted shipping activity.
Oil has climbed to its highest level in nearly a month, recovering part of the nearly 30% decline recorded in the second quarter amid fresh concerns over supply from the energy-rich region.
In recent weeks, Persian Gulf producers had begun increasing crude exports after an interim peace agreement eased concerns over shipments. The United Arab Emirates, in particular, boosted exports by using shuttle tankers operating with their transponders switched off.
Adding to regional tensions, Yemen’s Iran-backed Houthi rebels launched ballistic missiles and drones toward Saudi Arabia, marking the most significant escalation between the two sides since they agreed to a ceasefire in 2022.
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