Crude Oil Jumps as Iran Attack on US Base Raises Supply Risk

WTI crude rallied past its 50-day moving average, a level that had capped gains since the initial selloff last week. Brent crude also bounced from the $85 support zone, which aligns with the 200-day moving average. Both benchmarks had fallen sharply in the prior session as traders weighed the impact of the Hormuz closure, but the direct attack on US forces shifted the focus to escalation risk, traders added.

The moves come ahead of the Federal Reserve’s interest rate decision later Wednesday. A rate cut could weaken the dollar, supporting oil prices further, but a hawkish hold might pressure commodities, analysts said. The Fed decision is due at 2 p.m. ET.