Investing.com– Oil prices rose for a third straight session in Asian trade on Wednesday as U.S. President Donald Trump threatened further military action against Iran and Washington resumed its blockade on Iranian shipping through the Strait of Hormuz.
As of 21:01 ET (01:01 GMT), Futures expiring in September rose 1.7% to $86.15 per barrel, while advanced 1.3% to $80.34 per barrel.
Both benchmarks hovered at their highest levels in about a month, having surged nearly 10% at the start of the week.
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Trump said in a Fox News interview aired late Tuesday that U.S. strikes would intensify unless Tehran returned to negotiations, warning that Washington would target Iran’s power plants and bridges next week if no deal was reached.
He said U.S. forces would continue striking Iranian military and coastal infrastructure, while adding that energy facilities would be saved for last.
Trump also said U.S. officials had remained in contact with Iranian counterparts and insisted Tehran had no choice but to negotiate
The latest advance came as the U.S. resumed its blockade of Iranian shipping on Tuesday evening.
Markets also weighed Trump’s decision to backtrack on his proposal to impose a 20% fee on commercial cargo transiting the Strait of Hormuz after key U.S. allies in the Gulf urged him to abandon the plan.
Shipping activity through the strait has slowed sharply following the renewed conflict, with attacks on commercial vessels and Gulf tankers.
Industry data from the American Petroleum Institute showed U.S. crude oil inventories fell by 56,000 barrels last week, compared to an expected 2.7 million barrel draw.
Investors are now awaiting official U.S. Energy Information Administration data due later on Wednesday for confirmation of another weekly stockpile draw.