Global oil prices extended their gains on Wednesday as renewed military tensions in the Middle East raised concerns over potential disruptions to energy supplies, particularly through the Strait of Hormuz, one of the world’s most critical oil shipping routes.
Brent crude futures rose 99 cents, or 1.2%, to $85.72 per barrel, while US West Texas Intermediate (WTI) crude gained 64 cents, or 0.8%, to $79.98 per barrel. The latest increase follows a nearly 2% jump in prices during the previous trading session, pushing oil to its highest level in about a month.
Market sentiment has been driven by fears that escalating hostilities could further disrupt global oil exports. The Strait of Hormuz, through which roughly one-fifth of the world’s oil and liquefied natural gas shipments normally pass, remains a key concern for traders and energy markets.
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According to reports, the United States has launched another round of strikes against Iranian-linked targets, saying the operations are intended to reduce threats to commercial shipping in the region. Iran, meanwhile, has stated that the Strait of Hormuz remains closed following the latest escalation in hostilities.
Analysts say the physical oil market remains adequately supplied for now, but any prolonged disruption to shipping routes or additional sanctions on Iranian oil exports could tighten global supply and push prices even higher.
Market experts believe oil could approach the $100 per barrel mark if the conflict expands and damages energy infrastructure across the Gulf region. However, they also note that renewed diplomatic efforts and the reopening of the Strait of Hormuz could help stabilise prices in the coming weeks.
Investors are closely monitoring developments in the region, with energy markets expected to remain volatile as geopolitical uncertainty continues to influence global supply expectations and trading sentiment.