Global oil prices posted modest gains on Wednesday after the United States launched another round of military strikes on Iran, heightening concerns over potential disruptions to global energy supplies amid escalating tensions in the Middle East.
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Brent crude futures rose by 50 cents, or 0.55%, to $91.51 per barrel, while US West Texas Intermediate (WTI) crude gained 30 cents, or 0.36%, to $84.64 per barrel in early trading. The increases followed Tuesday’s settlement at the highest levels seen in five weeks.
The latest market movement came after the US military confirmed it had completed its 11th consecutive night of strikes targeting Iranian military sites. The operations coincided with reports from Kuwait that its air defence systems intercepted Iranian drones, adding to fears of a broader regional conflict.
Energy markets remain on edge as the exchange of attacks between Washington and Tehran continues to threaten key oil transportation routes. Concerns have also intensified after Yemen’s Houthi movement announced a naval blockade targeting Saudi Arabia and threatened vessels carrying Saudi crude through the Bab el-Mandeb Strait, a strategic shipping corridor linking the Red Sea to global markets.
The Bab el-Mandeb has become increasingly important for Saudi oil exports as traffic through the Strait of Hormuz has declined following the collapse of a ceasefire between the United States and Iran earlier this month.
Meanwhile, US Defense Secretary Pete Hegseth told lawmakers that the conflict with Iran has so far cost the United States $37.5 billion, highlighting the growing financial burden of the military campaign.
Read More: Brent oil crosses $90 as US–Iran conflict disrupts Gulf shipments
Investors are also monitoring US fuel inventory data after the American Petroleum Institute reported increases in crude oil and distillate stockpiles, while gasoline inventories declined. Official figures from the US Energy Information Administration are expected to provide further direction for oil markets.
Analysts say geopolitical developments will likely remain the primary driver of crude prices as traders assess the risk of further disruptions to global energy supplies.