Oil Rises for Third Day as US-Iran Clashes Escalate, WTI Near $91

International oil prices rose for a third straight trading day as renewed military clashes between the US and Iran fueled concern that crude shipments through the Strait of Hormuz could be disrupted.

West Texas Intermediate neared $91 a barrel on September 1, Bloomberg reported. The US benchmark had surged 5.2% the previous day, its biggest one-day gain in five weeks. Brent crude closed near $95 a barrel.

The latest advance followed an escalation in fighting between Washington and Tehran. President Donald Trump said recent US airstrikes were retaliation for Iran's attempted mining of the Strait of Hormuz and attacks on US military bases. He added that the US could carry out further strikes if Iran responds again.

Iran quickly retaliated. Tasnim, Iran's semi-official news agency, reported that Iran launched missiles toward Jordan targeting US military bases in the Middle East. Iran's Islamic Revolutionary Guard Corps, or IRGC, said the latest clash had further strengthened its control over the Strait of Hormuz.

The confrontation ended a lull that had lasted for weeks after the US said it would shift its pressure campaign on Iran from military action to economic sanctions. International oil prices rose only modestly last month, but they have climbed more than 30% since the war began in late February.

Refined products such as diesel have been rising even faster than crude as conflict in the Middle East overlaps with the Russia-Ukraine war. If tensions around the Strait of Hormuz persist, concern over supply disruptions in crude and petroleum products may continue.

Signs of a drawdown in US crude inventories also supported prices. The American Petroleum Institute said US crude stockpiles fell by 2.6 million barrels last week. If official data confirms the decline, it would be the first drop in five weeks.