Oil prices rose 1% on Wednesday, March 4, 2026, as the United States-Israeli war on Iran disrupted Middle East supplies.
However, the pace of gains slowed from past sessions after United States President Donald Trump raised the possibility of the U.S. Navy escorting vessels through the Strait of Hormuz.
Brent rose $1.17, or 1.4%, to $82.57 a barrel by 0408 GMT, after closing at its highest since January 2025 on Tuesday.
U.S. West Texas Intermediate crude rose 72 cents, or 1%, to $75.28, after settling at its highest since June. Both rose by around 5% or more in the past two sessions.
Phillip Nova senior market analyst Priyanka Sachdeva said: “Right now, geopolitics has clearly overtaken the usual price drivers like inventory data, U.S. economic numbers or OPEC commentary.
“In the near term, the key pointers to watch are physical export data from the Gulf, any confirmed tanker incidents, U.S. naval movement, and Iran’s tone.”
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Israeli and U.S. forces struck targets across Iran on Tuesday, prompting Iranian strikes against energy infrastructure in a region that accounts for just under a third of global oil production.
Iraq, the second-largest crude producer in the Organization of the Petroleum Exporting Countries (OPEC), has cut output by nearly 1.5 million barrels a day, about half its production, due to storage limits and the lack of an export route, officials told Reuters.
They said the country may have to shut its nearly 3 million bpd of output within days if exports do not resume.
Iran has also targeted tankers in the Strait of Hormuz, through which about a fifth of the world’s oil and liquefied natural gas flows. Traffic through the Strait remains effectively closed.
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