Oil prices climbed further on Wednesday as fresh U.S.-Iran military strikes increased concerns about global supply. Brent crude rose 75 cents, or 0.8%, to $95.40 per barrel. U.S. West Texas Intermediate gained 44 cents, or 0.5%, to reach $90.66.
The latest gains followed a powerful rally during Tuesday’s trading session. Brent jumped more than $4, recording its biggest daily increase since July 24. WTI also gained more than $4, marking its strongest rise since July 23.
The United States said it carried out several airstrikes against targets in Iran overnight. Tehran responded with attacks against American military positions across the region. The exchange represented the most serious escalation between Washington and Tehran in several weeks.
Market concerns now center heavily on the Strait of Hormuz. The crucial waterway handled roughly one-fifth of global oil consumption before the conflict began. Iran has effectively closed the route to commercial shipping, increasing pressure on crude supplies.
Iran’s Islamic Revolutionary Guard Corps warned that American strikes could further restrict maritime traffic. Analysts at ING said recent developments had renewed concerns about regional oil supplies. They also warned that higher tensions could threaten vessels attempting to cross the waterway.
The latest escalation followed renewed fighting over the weekend. That flare-up marked the first major hostilities since July. Attacks on two tankers leaving the Strait of Hormuz on Monday also disrupted shipments and pushed traders toward alternative crude supplies.
Iranian forces reported attacks against U.S. military facilities in Jordan and Bahrain. Jordan’s military said its defenses intercepted 10 of 13 ballistic missiles entering its airspace. U.S. officials reported no American casualties from those attacks at the time.
Kuwait also reported hostile drone activity and said its armed forces were responding. The growing regional risks have added another layer of uncertainty for energy markets. Traders now face the possibility of prolonged disruptions rather than a brief supply shock.
Analysts said the market increasingly reflects the economic cost of an unresolved conflict. The absence of clear negotiations could keep the risk premium elevated. Any evidence of renewed diplomacy could therefore influence prices quickly.
U.S. inventory data provided another supportive factor for crude prices. Domestic crude stocks fell by 2.6 million barrels during the week ending August 28. Distillate inventories, including diesel and heating oil, declined by another 265,000 barrels.
For now, oil prices remain highly sensitive to developments across the Middle East. Any disruption around Hormuz could create additional pressure on global supplies. Until shipping resumes normally, oil prices may continue carrying a significant geopolitical risk premium.