U.S.–Iran Exchanges Escalate and Lift Oil Prices

Overview

• Fighting between U.S. and Iranian forces intensified this week, with U.S. strikes on Iranian radar and mine‑laying capabilities followed by Iranian retaliation that marked the sharpest flare‑up since July.
• Global oil benchmarks rose on the reports, with Brent near $95.60 and WTI near $91.00 as traders priced greater risk to shipments through the Middle East.
• Iran has effectively disrupted traffic through the Strait of Hormuz, a waterway that previously carried about one‑fifth of the world’s oil and LNG and that traders say magnifies supply risk.
• Countries have tapped strategic petroleum reserves to steady markets and U.S. official data showed unexpected falls in crude stocks that tightened available supply.
• Brazilian markets rallied on Wednesday after a poll narrowed the presidential race, sending the Ibovespa up about 3% and strengthening the real as foreign investors returned, and traders now watch OPEC’s early‑October meeting and more inventory data for direction.