Oil prices inched higher on Wednesday but remained below the key USD 95-per-barrel mark, as markets reacted cautiously to renewed geopolitical tensions following fresh US strikes on Iran in West Asia.
International benchmark Brent crude was trading around USD 92.40 per barrel, up nearly 1 per cent, while US West Texas Intermediate (WTI) crude hovered near USD 89.06 per barrel, also registering modest gains.
The move comes after the United States launched retaliatory strikes on Iranian targets following the downing of a US military helicopter near the Strait of Hormuz, a key global oil transit chokepoint.
On Wall Street, investor sentiment remained cautious in the wake of the geopolitical developments. The Dow Jones Industrial Average edged higher by over 100 points, while the S&P 500 traded marginally in the green. In contrast, the Nasdaq slipped around 50 points, weighed down by weakness in technology stocks.
Oil prices have remained highly volatile, with concerns mounting over potential supply disruptions at the Strait of Hormuz, a critical maritime chokepoint that handles nearly 20 per cent of global oil flows, heightening inflation risks for economies worldwide.
Earlier on April 30, Brent climbed near a multi-year high of USD 126 a barrel, gaining nearly 7 percent intraday, extending the momentum built on the back of a strong surge earlier. Before, on March 9, Brent crude surged over 27 per cent to trade at a multi-year high of USD 119 a barrel amid escalating West Asia tensions.
The prices later dropped significantly after the ceasefire announcement and coordinated oil reserve release by major G7 economies. The oil price, although at a multi-year high, is still lower than its all-time high of USD 147 per barrel seen in July, 2008. The recent hike was also lower than the USD 130 per barrel price that was hit in 2022 during the Russia-Ukraine crisis.
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