Brent oil price above $96 per barrel after Iran fires missiles at Kuwait

• Brent crude hit $96.20 per barrel (up 57 cents) and briefly broke $97, while U.S. crude traded at $91.86 (up 85 cents)
• About 17 million barrels of oil transited the Strait of Hormuz on Wednesday under U.S. military protection, down from 20 million barrels per day before hostilities began on Feb. 28
• President Trump indicated he does not expect the conflict to escalate further, stating 'I don't know how much more they can take' regarding Iran

Market Summary: Oil Prices Surge on Iran-Kuwait Military Conflict

Key Price Movements:

Oil prices rallied Thursday following Iranian missile and drone strikes on Kuwait. Brent crude rose $0.57 to $96.20 per barrel, after briefly breaking $97 earlier in the session. U.S. crude gained $0.85 to $91.86 per barrel. Both benchmarks have climbed over 7% this week.

Geopolitical Developments:

Kuwait's armed forces reported facing "ongoing Iranian aggression" as air defenses intercepted incoming Iranian missiles and drones. The U.S. and Iran have exchanged military strikes this week for the first time since July, with Washington attempting to protect crucial shipping lanes and degrade Tehran's military capabilities.

Strategic Implications:

The Strait of Hormuz remains the focal point of tensions. Energy Secretary Chris Wright reported a wartime record of 17 million barrels transiting the strait Wednesday under U.S. military escort, compared to approximately 20 million barrels per day before hostilities began February 28. This represents a roughly 15% reduction in flow through the critical chokepoint.

Market Outlook:

President Trump expressed optimism about de-escalation, stating he doesn't expect prolonged hostilities and suggesting Iran's capacity to sustain the conflict may be limited. His comment "I don't know how much more they can take" implies potential near-term resolution.

Bottom Line:

The oil market faces continued upward pressure as Middle East tensions threaten supply routes through Hormuz, which handles significant global crude flows. While prices remain elevated, presidential remarks suggest markets may be pricing in temporary rather than sustained disruption. Traders should monitor Hormuz transit volumes and diplomatic developments closely.