New Delhi: Global oil prices rose on Wednesday morning as fresh military action in West Asia heightened concerns over disruptions to energy supplies.
At 7.40 am, the August Brent crude contract on the Intercontinental Exchange was trading at $96.99 a barrel, up 1.03% from its previous close. The July contract of West Texas Intermediate (WTI) on the Nymex was trading at $94.85 per barrel, higher by 1.15%.
According to the US military, Iran fired missiles towards Kuwait and Bahrain, but the attacks failed to hit their intended targets.
Meanwhile, the US has targeted Iran’s Qeshm Island, Reuters reported. Israel also continued its strikes on Lebanon, raising concerns that efforts to secure a diplomatic resolution could be jeopardised.
In a post on social media X, the US Central Command said, “In additional wave of Iranian drones attempting to attack U.S. forces in Kuwait failed to impact intended targets tonight. U.S. Central Command air defenses successfully downed multiple drones and ensured no American personnel or assets were harmed.”
Market sentiment was also weighed down by uncertainty and the slow pace of negotiations between Iran and the US.
US President Donald Trump, on his Truth Social, on Tuesday, said talks have been ongoing, but where they are headed is not known.
“Fake News Reports that the Islamic Republic of Iran, and the U.S.A., stopped speaking a few days ago are false and erroneous. The conversations between us have been going on continuously, including four days ago, three days ago, two days ago, one day ago, and today,” he wrote in a Truth Social post.
“Where they lead, one never knows, but as I told Iran, ‘It’s time, one way or another, for you to make a Deal. You’ve been doing this for 47 years, and it cannot be allowed to go on any longer!’,” Trump added.
The ongoing war and the blockade of the Strait of Hormuz have shaved 20% off global liquefied natural gas (LNG) supplies and the longer Hormuz remains closed, the higher oil, gas, and electricity prices will rise, adding further pressure to businesses and households worldwide, as per a report by global research firm Wood Mackenzie on Tuesday.
It said the conflict has removed more than 80 million tonnes per annum (mtpa) of LNG from world markets, equivalent to 20% of global supply.
Crude prices had eased in the past one week over hopes of a peace deal. However, the uncertainty of the ongoing negotiations has kept traders on edge.
