West Texas Intermediate (WTI) crude surged 6.9% to trade at $84.74 per barrel on Wednesday, reversing a steep decline earlier in the week.
The sharp rally followed comments by US President Donald Trump on Fox News, in which he threatened renewed military strikes against Iran.
The price action marks a significant reversal from the 8% drop seen just days prior, when markets had begun to digest a normalization of shipping routes through the Strait of Hormuz.
The remarks immediately injected fresh geopolitical risk into energy markets, which had recently priced in a de-escalation of tensions in the region.
The price action marks a significant reversal from the 8% drop seen just days prior, when markets had begun to digest a normalization of shipping routes through the Strait of Hormuz.
That earlier retreat had brought Brent crude close to pre-war lows, as traders assessed that the immediate threat to physical supply chains had diminished.
However, Trump’s latest statements have cast doubt on the durability of that fragile stability, prompting a rapid repricing of geopolitical risk premiums.