Oil experienced an uptick on Wednesday following President Donald Trump’s decision to reinstate a naval blockade on all Iranian ports, coinciding with Iran’s retaliatory strikes targeting U.S. infrastructure in the region. For the second consecutive session, Brent reached its peak since June 12, while West Texas Intermediate hit its highest point since June 15, continuing to rise in early Wednesday trading. Brent increased by $1.46, representing a 1.72% rise, reaching $86.19 per barrel at 0029, while WTI saw an uptick of $1.11, or 1.4%, bringing it to $80.40 per barrel.

Oil prices closed up 2% to a one-month high on Tuesday as attacks deepened a supply disruption in the Strait of Hormuz, where some one-fifth of the world’s oil and liquefied natural gas transited prior to the beginning of the war. On Wednesday morning, the United States initiated a new series of strikes “to continue degrading Iranian capabilities used to attack commercial shipping in the Strait of Hormuz,” according to the U.S. military. Tehran has announced the closure of the strait once more, following a resurgence of hostilities between Iran and the U.S. last week, which has further strained the already tenuous truce established in June after months of conflict. “I’ll save the energy targets for last, but ultimately we’ll hit energy targets,” Trump told in an interview.

Iran’s army announced early on Wednesday the initiation of drone strikes targeting U.S. positions located at Jordan’s Azraq base. There was no prompt response from the Pentagon. Iran’s Islamic Revolutionary Guard Corps announced that they have targeted weapons and storage facilities located in Bahrain and Kuwait. Reuters was unable to promptly confirm the reports. The recent escalation has intensified scepticism regarding the memorandum of understanding signed last month, raising questions about its potential to bring about a lasting cessation of hostilities that have affected Iran’s neighbouring countries.

“The chances of oil moving back toward $100 in the reasonably near term are still meaningful if hostilities intensify which damages energy infrastructure around the Gulf,” Tim Waterer said, noting Brent prices could remain at $75-$80 a barrel if diplomatic efforts helped reopen the strait. “For now, the risk premium is still embedded, but it’s not a one-way bet given that there remain incentives for both sides to find a diplomatic solution.”