(RTTNews) – Oil prices traded higher for a third consecutive session on Wednesday as the U.S and Iran escalated a standoff over control of the Strait of Hormuz, raising fears of prolonged disruptions to energy supplies.
Brent crude futures traded half a percent higher above $85 a barrel, while WTI crude futures were up 0.6 percent at $79.83.
U.S. forces resumed the naval blockade against vessels transiting to and from Iranian ports and coastal areas, and President Donald Trump threatened to hit energy targets in Iran, deepening fears of a wider supply disruption.
U.S. forces will intensify their campaign in the coming days, targeting power plants and bridges if Iran refuses to sign a deal with Washington, Trump was quoted as saying by Fox News.
“I’ll save the energy targets for last, but ultimately their energy targets will be hit. We’re going to knock out all their power plants. We’re gonna knock out their bridges unless they get to the table and negotiate,” Trump said in a Tuesday night interview with Fox News.
Meanwhile, Trump backed away from his threat to charge a 20 percent toll on all cargo going through the Strait of Hormuz.
The President said he would instead chase “trade and investment deals” with Persian Gulf nations after speaking to their leaders.
“There are currently more than 20 U.S. Navy warships and hundreds of military aircraft operating across the Middle East. American forces remain vigilant, lethal, and ready,” the U.S. Central Command said in a post on X.
Iran’s IRGC warned of targeting oil routes for U.S. allies after launching a pre-dawn strike on the U.S. AI-Azraq Air Base in Jordan.
Missile alert warnings went out in Bahrain and Kuwait early today as they faced incoming Iranian fire.
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