Brent Nears $96 as Middle East Conflict Escalates

U.S. Central Command initiated the latest round of strikes at 5:30 p.m. ET on Wednesday, following direct orders from President Trump to degrade Iranian capabilities in the region. The escalation follows an IRGC claim that an oil tanker caught fire near the Strait of Hormuz, prompting Tehran to declare the waterway under its control. Maritime traffic faces further peril as Houthi forces expanded their naval blockade, explicitly targeting Saudi oil shipments. Security reports confirmed that the Saudi-flagged tanker Encelia sustained damage in the Red Sea, while at least nine other vessels have retreated from the area.

Energy markets largely ignored a surprise report from the EIA showing a 2 million barrel increase in commercial crude inventories. Although higher reserves usually suppress prices, the ongoing geopolitical volatility has rendered traditional inventory analysis secondary to fears of a complete supply disruption. With diplomatic channels effectively closed and shipping chokepoints under active threat, traders remain focused on the immediate risk of further escalation in the Persian Gulf.