In a military operation against Iran by the United States and Israel, the Middle East’s oil supply has been impacted. On Wednesday, oil prices rose by 1%, although the increase was slower compared to previous trading days. President Trump had previously suggested that the US Navy may provide escort for ships passing through the Strait of Hormuz.
According to Reuters, as of 10:15 am Greenwich Mean Time on the 4th, Brent crude oil rose by 91 cents (up 1.1%) to $82.31 per barrel, after setting a new high since January 2025 at the closing price on the 3rd.
US West Texas Intermediate crude oil (WTI) rose by 63 cents to $75.19, up by 0.8%. Previously, its closing price had reached the highest level since June last year. Both of these major crude oil benchmarks have risen by around 5% or more in the past two trading days.
Kelvin Wong, a senior market analyst at forex trader OANDA, said, “The main factor driving oil prices in the short term is still the US-Iran conflict. Only clear signals of de-escalation can ease or reverse the current upward trend of WTI, but such signs have not yet appeared.”
On Tuesday, the US-Israeli coalition continued to target Iranian assets, leading to retaliatory attacks by Iran on Middle Eastern energy infrastructure—this region accounts for nearly one-third of global oil production.
As the second-largest crude oil producer in the Organization of the Petroleum Exporting Countries (OPEC), Iraq has reduced its daily production by nearly 1.5 million barrels due to limited storage space and a lack of export channels, representing about half of its total production.
Iraqi officials disclosed to Reuters that if exports cannot be restored, production could be reduced by nearly 3 million barrels per day within days.
Iran also attacked oil tankers in the Strait of Hormuz, resulting in a halt in shipping through the strait. The strait carries approximately one-fifth of global oil and liquefied natural gas transport.
President Trump stated that if necessary, the US military could provide escort for oil tankers passing through the strait and has instructed the US International Development Finance Corporation to provide political risk and financial guarantees for maritime trade in the Gulf region.
Analysts at the Dutch conglomerate noted in their report, “While this move is welcome, it is evidently not immediately effective. Naval escort, though helpful, also requires time to be implemented.”
Despite the high risks involved, a few tankers are still attempting to pass through the Strait of Hormuz. Ship tracking data revealed that on Tuesday, a tanker crossed the strait heading for a port in the United Arab Emirates to load crude oil. This rare voyage since the US-Israeli conflict with Iran indicates efforts to restore energy transport through the Strait of Hormuz.
The Suexmax tanker “Pola” turned off its Automatic Identification System (AIS) tracker when approaching the strait on the evening of March 2 and was spotted near Abu Dhabi on March 3.
Two trade sources revealed that the tanker is headed towards Jebel Dhanna port to load Abu Dhabi’s Murban crude oil for Thailand.
According to data from ship tracking firm Vortexa, on the day after the conflict erupted (March 1), only 4 crude oil tankers passed through the strait, while the average daily traffic since January had been 24 tankers.