Meanwhile, U.S. military is credited for moving over 100 barrels of oil through the Strait of Hormuz: File Image/Pixabay 

The extreme see-saw sentiment influencing oil trading since the U.S./Iran war began saw investors on Wednesday cause a 2 percent jump in prices, as hopes of continued diplomacy between the two countries all but collapsed and U.S. president Donald Trump promised to attack the Islamic republic “very hard” if a peace deal wasn’t reached.

Indeed, towards the end of the session U.S. airstrikes against Iranian targets commenced, a development almost sure to sustain the upwards trajectory of oil for the remainder of the week, if not longer; explosions were heard in Sirik, Qeshm Island, Minab, and Isfahan.

Brent settled up $1.65, or 1.8 percent, at $93.10 per barrel, and West Texas Intermediate settled up $1.83, or 2 percent, at $90.03 per barrel.

Regarding the relatively benign price rises of the commodity overall, Trump earlier in the session told media that the U.S. military recently executed a “secret mission” in the Strait of Hormuz, escorting over 200 ships through the waterway and ensuring that over 100 million barrels of oil were delivered to global markets: “That’s why [oil] is at $85-$80 a barrel instead of $250.”

Wednesday’s trading was also supported by data from the U.S. Energy Information Administration showing that crude inventories fell by 7.2 million barrels in the week ended June 5, compared to expectation of a 4 million barrel draw.

Additionally, inventories of the Strategic Petroleum Reserve were reportedly at their lowest levels since August 2023.

Wael Sawan, chief executive officer of Shell, said, “At the moment the market is trying to find some equilibrium….it’s more driven by short-term headlines, and so if I look at the reality, we’re of course drawing down on those inventories fast.”

For its part, Bloomberg pointed out that despite sky-high tensions, crude futures were down by more than a quarter since their peak at the end of April, aided by a plunge in Chinese imports, large releases of emergency reserves, and some movement through the Hormuz: “The retreat is a sign that oil markets are, for now at least, coping with the disruption and physical markets look well supplied.”