Oil prices experienced volatility on Wednesday as the United States initiated military strikes against Iran. This action follows the recent downing of an American Apache helicopter, escalating tensions and raising concerns about the security of crucial shipping lanes.

U.S. crude oil futures for July delivery saw a slight dip of 0.19% to $88.03 per barrel, after initially climbing over 1%. Brent futures, the international benchmark for August delivery, also edged down by 0.2% to $91.27 per barrel.

The U.S. military confirmed the completion of strikes targeting Iranian military installations near the strategically vital Strait of Hormuz. These operations were described by U.S. Central Command (Centcom) as a defensive and proportionate response to alleged Iranian aggression, specifically the downing of a U.S. Army Apache helicopter the previous day.

President Donald Trump had previously stated that Iran was responsible for the helicopter incident and vowed retaliation. He emphasized the necessity of a U.S. response, noting that the two pilots involved were unharmed.

The conflict's potential impact on oil supply is significant. Rystad Energy highlights that the shutdown of 11.8 million barrels per day across six Gulf producers represents the most severe oil supply disruption in modern history. The consultancy estimates cumulative production losses have already reached one billion barrels, with a warning that continued conflict could lead to further monthly losses of 350 million barrels.