Oil prices are climbing as the Trump administration approaches a critical 60-day deadline under the War Powers Resolution. The deadline requires congressional authorization for continued military action against Iran or a cessation of hostilities.
This follows the joint US-Israeli strikes on Iranian nuclear and military sites earlier this year-an operation dubbed "Epic Fury." Iran has retaliated against US and regional assets, escalating the conflict. Markets are now pricing in a higher probability of WTI crude price increases, reacting to the potential for further disruption in the Strait of Hormuz, a vital global oil chokepoint.
Diplomatic efforts are ongoing but unresolved. Traders are watching Congress closely. The Bab el-Mandeb Strait market remains largely unaffected, but the Strait of Hormuz traffic market is consistent with a prolonged disruption scenario.