By midday Wednesday, July Nymex West Texas Intermediate crude futures climbed $3.15 to reach $91.35 per barrel, while August Brent futures rose to $93.95 per barrel. The rally followed a period of relative calm earlier in the week, reversing Tuesday’s pullback as market participants reacted to renewed hostilities. The volatility stems from a retaliatory strike by U.S. Central Command following the downing of an American helicopter near the Strait of Hormuz—an incident Iran initially claimed was accidental before launching subsequent missile and drone attacks.

President Trump signaled a hardening stance on Truth Social, warning Tehran that it would face consequences as diplomatic patience wears thin. Despite the aggressive rhetoric, analysts at Ritterbusch and Associates suggest the current risk premium remains tempered by the lingering possibility of an interim deal to secure the waterway. Meanwhile, traders are balancing these geopolitical pressures against fresh Energy Information Administration data, which reported a 7-million-barrel drawdown in U.S. commercial crude stocks for the week ended Friday.