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…