(Bloomberg) — Oil prices surged Wednesday, lifting Brent crude above $90/bbl, after President Donald Trump said the U.S. would launch new strikes against Iran, renewing concerns over Middle East oil supplies and regional shipping.

Brent settled near $91/bbl, up about 8%, rebounding from its steepest three-day decline since 2020. Crude markets have remained highly volatile throughout July as military conflict between the U.S. and Iran has repeatedly disrupted expectations for regional stability and energy flows.

Trump told Fox News that Iran would face another round of U.S. strikes following an attack on American forces in Jordan. Iran's Islamic Revolutionary Guard Corps said it targeted a U.S. air base and command center with ballistic missiles, while Iranian media later reported U.S. strikes on Iranian territory.

The latest escalation has renewed attention on risks to oil and LNG shipments through the Strait of Hormuz and Red Sea. RBC Capital Markets analysts, led by Helima Croft, said they remain skeptical of a near-term diplomatic breakthrough, warning that continued threats to shipping from missiles, drones and mines are likely to keep a significant portion of the tanker market on the sidelines.

Adding to supply concerns, fires broke out aboard two LNG vessels at Egypt's Damietta port, while the U.S. imposed sanctions on two Iranian companies involved in charging vessels for passage through the Strait of Hormuz.

Meanwhile, U.S. Energy Information Administration data showed crude oil inventories fell by 7.2 million bbl last week, the largest decline since mid-June, underscoring tightening supply as global buyers increasingly look to U.S. exports to offset disruptions from the Middle East.