Oil prices climb as US-Iran tensions threaten supplies

Oil prices rose nearly 1% in early trading on Wednesday as tensions between the United States and Iran increased

Oil prices rose nearly 1% in early trading on Wednesday as tensions between the United States and Iran increased concerns about disruptions to global energy supplies.

Brent crude futures gained 87 cents, or 0.92%, to reach $95.52 a barrel by 0008 GMT. US West Texas Intermediate (WTI) crude rose 80 cents, or 0.89%, to $91.02 a barrel.

The latest gains followed a sharp rally in the previous session. Both benchmark contracts jumped by more than $4 on Tuesday. Brent recorded its strongest daily increase since July 24, while WTI posted its biggest rise since July 23.

The oil market has come under renewed pressure after the United States and Iran exchanged strikes overnight. The escalation has raised fears that the conflict could further affect energy infrastructure and the movement of crude through key regional shipping routes.

US officials said American forces carried out airstrikes against targets in Iran. Iran responded with attacks on US-linked military positions in the region.

US Central Command said the strikes followed alleged attacks by Iran’s Islamic Revolutionary Guard Corps (IRGC) targeting commercial shipping in the Strait of Hormuz and US military personnel stationed in the region.

The Strait of Hormuz remains a major concern for energy markets. The waterway handled roughly one-fifth of global oil consumption before the conflict. Any prolonged disruption could have a significant impact on crude supplies and international prices.

Iran’s IRGC said the latest US strikes would further restrict commercial traffic through the strategic waterway. Iran has already effectively halted normal commercial shipping through the strait amid the escalating conflict.

Iranian authorities also claimed to have targeted a US military base in Jordan with ballistic missiles. Iranian state media separately reported a large drone attack on a US base in Bahrain.

Jordan’s military said its air defence systems intercepted 10 of 13 ballistic missiles that entered its airspace. US officials said there were no immediate reports of American casualties from the attacks.

Kuwait also reported hostile drone activity and said its armed forces were responding to the threat.

The latest escalation came after a weekend increase in fighting. It was the first major flare-up since July. The situation worsened further after two tankers leaving the Strait of Hormuz were attacked on Monday.

The tanker attacks created additional uncertainty in the oil market. Traders have been forced to look for alternative sources and shipping routes as concerns grow over the security of crude supplies from the region.