Oil prices rose for a third consecutive day as the widening U.S.-Israeli air campaign against Iran and threats to the Strait of Hormuz heightened fears of global supply disruptions.
Brent crude futures climbed to $78.83 per barrel, up $1.10 or 1.4 percent, while U.S. West Texas Intermediate rose 74 cents to $71.97, reflecting sustained market anxiety over regional instability.
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The conflict intensified as Israel targeted Lebanon and Iran struck energy infrastructure across Gulf countries, including drone attacks on tankers in the Strait of Hormuz, a vital waterway carrying one-fifth of global oil demand.
Shipping through the strait is severely restricted as insurers cancel coverage, prompting tankers and container ships to avoid the area entirely, increasing risk premiums for crude and refined fuel transport.
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Analysts warned that prolonged hostilities could push Brent prices to $120-$150 per barrel, while refined product markets are also under pressure, with Saudi Arabia shutting its largest domestic refinery following a drone strike.
Investors and traders are monitoring developments closely, as disruptions to crude, diesel, gasoline, and liquefied natural gas flows from the Middle East could continue to drive energy prices sharply higher worldwide.