Oil prices surge as US-Iran hostilities threaten Strait of Hormuz supply

Oil prices surged on Wednesday, 9 September, as Brent crude approached the $98 threshold following U.S. military strikes on five Iranian tankers and subsequent threats from Tehran against commercial shipping in the Arabian Gulf. Energy prices surge on supply fears As of 8:28 AM Tokyo time on Wednesday, Brent crude rose 0.95% to $97.92 a barrel, while West Texas Intermediate (WTI) climbed 1.40% to $94.33. Abu Dhabi’s Murban crude experienced the sharpest volatility, jumping 3.75% to $110.80, a $4.00 increase. This price action follows a Tuesday session where Brent settled at $97.92, up 92 cents, nearing its highest level in six weeks. The market spike is a direct response to U.S. Central Command (CENTCOM) reporting the destruction of five Iranian crude carriers. CENTCOM identified the targeted vessels as the M/T Kaviz, M/T Charminar, M/T Horizon 1, and M/T Riesco in the Gulf of Oman, and the M/T Derya near Kharg Island. The U.S. military stated the strikes were retaliatory after the Islamic Revolutionary Guard Corps (IRGC) launched two ballistic missile attacks against a U.S. Navy warship over a 48-hour period. Threats to Bahrain and Kuwait ports Tehran escalated the confrontation on Wednesday by issuing an immediate warning to commercial crews near Bahraini and Kuwaiti ports. The IRGC Navy ordered crews to abandon tankers, whether anchored or docked, alleging that Bahrain and Kuwait are assisting U.S. military operations. Iran warned these vessels could be targeted in…