GLOBAL crude oil prices climbed towards US$85 a barrel on Wednesday as mounting geopolitical risks and threats to major energy routes heightened fears over disruptions to global supplies.
West Texas Intermediate (WTI) crude rose for a second consecutive session, trading around US$84.60 a barrel during Asian hours as markets reacted to growing risks affecting oil shipments beyond the Middle East.
The rally followed President Donald Trump's warning that the United States was unlikely to resume talks with Iran in the immediate future, while signalling further military action and promising retaliation if Yemen's Tehran-backed Houthi rebels attempted to disrupt commercial shipping in the Red Sea.
The Red Sea has emerged as an important alternative export route for Saudi Arabia during the conflict, allowing the kingdom to redirect some crude shipments through pipelines and reduce reliance on the Strait of Hormuz, a vital global energy chokepoint.
Market concerns intensified after a Kuwaiti tanker carrying oil products was attacked in the Strait of Hormuz, underscoring continued threats to maritime traffic through one of the world's busiest oil shipping routes.
Outside the Middle East, traders are also monitoring attacks targeting the Caspian Pipeline Consortium terminal on Russia's Black Sea coast, a critical export hub responsible for handling the majority of Kazakhstan's crude shipments.
Meanwhile, the US dollar strengthened as rising geopolitical uncertainty and higher oil prices revived concerns over inflation and supported demand for safer assets.
The US Dollar Index (DXY) advanced towards 101.20, extending its recovery for a fourth consecutive session despite weaker US economic indicators, including a decline in the four-week average of ADP employment growth to 16,500 from 19,250.
Analysts said safe-haven demand and concerns over rising energy costs remained the key drivers behind currency movements.
The euro weakened against the dollar, with EUR/USD trading near 1.1400 as broad US dollar strength overshadowed softer US economic data and limited eurozone market developments.
The pound sterling also declined, with GBP/USD falling towards 1.3380, losing about 0.4 per cent amid concerns over Britain's fiscal outlook, political uncertainty within the Labour Party and expectations surrounding the latest UK inflation figures.
The Japanese yen remained under pressure, with USD/JPY climbing above 163.20 after breaking the 163.00 level for the first time since December 1986.
The combination of rising US Treasury yields, higher oil prices and continued yen weakness has fuelled speculation that Japanese authorities may intervene to curb further depreciation of the currency. - July 22, 2026
