Global crude prices surged over 4% on Wednesday, with Brent topping $95 per barrel following an 11th consecutive night of U.S. strikes against Iran.
The rally prompted market commentator Jim Cramer to state that crude’s “endless climb” can no longer be ignored, while U.S. Secretary of State Marco Rubio accused Tehran of not being “serious” about peace talks surrounding the Strait of Hormuz.
Energy Markets Brace for Inflation
As geopolitical ceasefire hopes faded, crude futures spiked sharply. Front-month Brent crude reached $95.07 per barrel—a 4.46% gain—while U.S. West Texas Intermediate (WTI) climbed 4.54% to $88.17 per barrel, at the last check.
The unrelenting upward movement caught the attention of CNBC’s Cramer, who posted on X: “It looks like the endless climb in oil can’t be ignored today…”
According to CNBC, Deutsche Bank strategist Jim Reid warned that Brent closing above $90 is “reviving fears about a wider stagflationary shock,” as investor bets on a July Federal Reserve rate hike mounted alongside rising energy costs.
Additionally, FXStreet cited ING analysts pointing to “mounting supply risks” elsewhere, noting that Russia’s CPC terminal in the Black Sea suspended loadings. The ongoing disruption threatens up to 1.7 million barrels per day of Kazakh exports, further squeezing global crude logistics.
Geopolitical Gridlock Hits Hormuz
Speaking at the ASEAN Foreign Ministers’ meeting, Secretary Rubio stated that Washington remains committed to diplomacy but emphasized that Iran continues to jeopardize bilateral agreements over the vital waterway. Rubio noted that Iran “demands the right” to control the Strait of Hormuz, calling it a “very dangerous precedent.”
“The problem we’re having right now is that they’re not serious about talks,” Rubio said. “If they’re serious, we’re serious. If they’re not, then we will do what is necessary to protect our interests.”
The comments followed overnight action by U.S. Central Command, which conducted its 11th straight night of strikes targeting Iranian military infrastructure, drone storage, and maritime capabilities to safeguard commercial shipping.
In premarket on Tuesday, WTI tracker United States Oil Fund LP (NYSE:USO) climbed 4.16% to $134.25 apiece at the last check, whereas Brent tracker United States Brent Oil Fund LP (NYSE:BNO) was higher by 2.16% at $51.65 apiece.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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