Oil prices rise for third consecutive session as US-Iran clashes intensify, Brent tops $95

International oil prices rose for a third consecutive trading session as military clashes between the United States and Iran intensified. Traffic through the Strait of Hormuz — a critical chokepoint for global crude shipments — plunged to roughly a third of normal levels, while a larger-than-expected drop in US crude inventories added further upward pressure.

Brent crude futures for November delivery settled up 1.04 percent at $95.63 a barrel on the London ICE Futures Exchange on Wednesday (local time), their highest level since July 24.

West Texas Intermediate (WTI) crude futures for October delivery also closed up 0.88 percent at $91.01 a barrel on the New York Mercantile Exchange, their highest since July 23.

Geopolitical tensions in the Middle East have escalated rapidly after the US and Iran, quiet for roughly a month, resumed exchanging airstrikes.

US forces struck radar installations and mine-laying capabilities along Iran's southern coast on Wednesday, and Iran retaliated with attacks on US military bases in the region. The renewed hostilities have drawn market attention to the Strait of Hormuz, one of the world's most important crude oil transit routes.

Shipping traffic through the strait has fallen sharply. According to maritime data, only four vessels passed through the Strait of Hormuz in a single day — down nearly 70 percent from the daily average of about 13 ships over the previous 10 days.

The Strait of Hormuz is the primary export corridor for crude oil and petroleum products from Middle Eastern producers to global markets. Concerns that disruptions to transit could directly affect global crude supply have added a risk premium to international oil prices.

A much steeper-than-expected decline in US crude inventories also supported the price gains.

According to the US Energy Information Administration (EIA), American crude stockpiles stood at 424.5 million barrels as of Friday, down 4.45 million barrels from the previous week — more than four times the 1.1 million-barrel drawdown the market had anticipated.