Oil surged as a fresh round of fighting erupted across the Middle East, threatening further disruptions to energy flows and severely undermining diplomatic efforts to end the months-old conflict. Brent climbed almost 4% to above $87 a barrel, paring some of the 16% loss over the past three sessions that was its biggest such decline since 2020. Since the start of July, the benchmark has traded in range of almost $32. The Islamic Revolutionary Guard Corps targeted a US airbase and command center in Jordan with ballistic missiles, state-run IRIB News reported, citing an IRGC statement. In addition, the IRGC also claimed to have hit and halted three tankers, without saying where the incidents took place. US Central Command said it had intercepted a “surprise” Iranian attack on US troops, without giving details. Meanwhile, the US military and Saudi Arabia also struck “Iran-aligned terrorists” in Iraq after they were directed by the IRGC to target American forces and Saudi energy infrastructure, Centcom said. Riyadh confirmed a joint operation with the US, saying strikes were undertaken as a “right of self-defense,” according to the state-run SPA. Oil has been whipsawed this month, initially surging as hostilities between the US and Iran re-escalated and the conflict spread to the Red Sea, with the Tehran-backed Houthis threatening to blockade Saudi ports, before prices gave back some gains. Investors remain focused on diplomatic moves to end the war, as well as signs flows through key chokepoints remain compromised. “We remain exceedingly skeptical that we are on the brink of a major diplomatic breakthrough that will resolve the nuclear standoff that started the war,” RBC Capital Markets LLC analysts including Helima Croft said in a note. “The ongoing threat of missiles, mines, drones, and Tehran tolls will keep a significant portion of the shipping market on the sidelines,” they added. On the Strait of Hormuz, Iran told Oman that its proposal for a route through the critical waterway, with 50% under Tehran’s control and 50% under Oman’s, would not address the Islamic Republic’s concerns. The inbound passage must be entirely under Iran’s control, along with part of the outbound channel, Deputy Foreign Minister Kazem Gharibabadi told state television. The IRGC statement on the latest tanker attacks said the vessels had been traveling on an “unsafe and illegal route,” according to IRIB News.Visible traffic through Hormuz — which links the Persian Gulf to global markets — remained thin early Wednesday. Only two commodity vessels crossed on Tuesday, according to Kpler data, a tally that may be adjusted. In Washington, President Donald Trump met Israeli Prime Minister Benjamin Netanyahu, as the US leader sought to avoid renewed bombing. After the meeting, Netanyahu told Fox News he was skeptical about a deal. Israel launched the war with the US in February to curb Tehran’s nuclear program.