Commodities
Home›Commodities›Energy›Oil jumps more than 7% as U.S.-Iran tensions threaten…
Oil jumps more than 7% as U.S.-Iran tensions threaten shipping lanes
WTI traded above $84 and Brent neared $90 ahead of the Federal Reserve’s rate decision, adding an upside risk to inflation expectations.
Oil prices surged more than 7% on Wednesday as renewed U.S.-Iran tensions and threats to shipping through the Bab el-Mandeb Strait boosted crude, with WTI pushing above $84 and Brent moving toward $90. OilPrice said the rally gained momentum after President Donald Trump told Fox News that the United States would hit Iran hard following an attack on a U.S. base in Jordan. The report also pointed to Iran-backed Houthis considering imposing fees on commercial shipping through the strait and U.S.-Saudi forces launching fresh strikes against Houthi positions in Yemen.
At 9:29 a.m. ET, Brent was up 7.1% to $90.03, while WTI was up 6.9% to $84.77, according to OilPrice. The move raised concerns about a renewed inflation shock as crude prices edged closer to $90.
The price jump comes just hours before the Federal Reserve announces its latest interest-rate decision, with markets divided on whether policymakers will hold rates steady or deliver the first increase since 2023. OilPrice added that June’s inflation report had eased some pressure after lower oil prices cooled headline inflation during a brief lull in the Iran war, but that benefit appears to be fading as fighting resumes.
Latest closeWTI crude $81.23 ▼1.7%|Brent $85.92 ▼2.8%