Oil prices fall despite continued US-Iran attacks

Oil prices fell on Wednesday after surging to their highest levels in more than a month earlier in the session, as traders weighed the risk of supply disruptions following overnight US and Iranian strikes against signs that crude supplies continue to reach global markets.

Brent crude futures fell 30 cents, or 0.3%, to $94.35 a barrel by 12:24 GMT, while US West Texas Intermediate crude futures dropped 58 cents, or 0.6%, to $89.64 a barrel.

Brent and WTI had earlier climbed to their highest levels since July 24, reaching intraday highs of $97.04 and $92.29 a barrel, respectively.

The United States and Iran returned to a war footing on Wednesday following the heaviest exchange of fire between the two sides in weeks, with Washington threatening further and more devastating strikes.

Iran’s Islamic Revolutionary Guard Corps said the US attacks would lead to further restrictions on shipping through the Strait of Hormuz, a vital waterway that carried around one-fifth of global oil consumption before the conflict erupted. Iran has effectively closed the passage to commercial shipping.

The IRGC said in a statement carried by state media on Wednesday that two oil tankers struck naval mines and were disabled while attempting to cross the Strait of Hormuz.

US Energy Secretary Chris Wright said on Tuesday that 17 million barrels of oil passed through the Strait of Hormuz on Monday, describing it as the highest level of crude flows through the waterway since the war with Iran disrupted supply traffic.

In another development, Russia launched a “massive” overnight missile and drone attack on energy infrastructure in Ukraine’s southern Odesa region, Ukrainian electricity transmission system operator Ukrenergo said on Wednesday.