BY COMFORT OGBONNA
Oil prices extended their gains on Wednesday as escalating military tensions in the Middle East increased concerns about potential disruptions to global energy supplies. Markets remained on edge after continued U.S. strikes against Iranian targets and warnings from Iran-backed Houthi militants forced several oil tankers to change course in the Red Sea.
Brent crude futures climbed $1, or 1.1%, to $92.01 a barrel during early trading, while U.S. West Texas Intermediate crude rose 82 cents, or 1%, to $85.16 a barrel. The increase followed oil prices reaching a five-week high in the previous session after fresh military actions involving the United States and Iran intensified fears of a wider regional conflict.
The latest price gains came after U.S. forces carried out additional strikes against targets in southern and western Iran. Iran responded by launching attacks on U.S. facilities in Bahrain, Kuwait and Jordan, raising concerns that the conflict could spread further and threaten critical energy infrastructure across the region.
The U.S. military confirmed that new strikes against Iran began late Tuesday in the United States, which occurred early Wednesday in Iran. The attacks followed reports from Kuwait’s military that its air defense systems were intercepting Iranian drones, adding to concerns about rising instability in the Gulf region.
Energy markets have become increasingly sensitive to developments in the Middle East because the region plays a central role in global oil production and transportation. Traders are closely monitoring shipping activity as threats from Yemen’s Iran-aligned Houthi group have raised fears of additional disruptions to oil flows.
The Houthis have warned that vessels transporting Saudi crude could become targets and announced plans for a naval blockade around Saudi Arabia. The threats have increased attention on the Bab el-Mandeb Strait, a strategically important waterway connecting the Red Sea with the Gulf of Aden and a key route for energy shipments.
The importance of the Bab el-Mandeb passage has grown as oil traffic through the Strait of Hormuz has declined following the collapse of a ceasefire agreement between the United States and Iran earlier this month. Any prolonged disruption in either route could create significant challenges for global energy markets.
Three oil tankers carrying Saudi crude shipments destined for China and India reversed direction in the Red Sea on Tuesday, choosing to move toward the Suez Canal rather than continue along the Yemeni coastline after receiving warnings from Houthi forces.
Market analysts said avoiding the Yemeni coast could increase transportation costs and extend shipping times, as vessels would be forced to enter and exit the Red Sea through alternative routes. Longer journeys could add pressure to global oil supply chains, particularly for Asian buyers that rely heavily on Middle Eastern crude.
Additional concerns emerged from developments in the Black Sea, where disruptions affecting oil exports from Kazakhstan added further uncertainty to supply conditions. The Caspian Pipeline Consortium suspended oil loading operations after attacks on tankers at its Black Sea terminal, which were attributed to Ukrainian drones. Ukrainian officials have not commented on the incidents.
Analysts warned that a prolonged suspension could eventually force Kazakhstan to reduce crude production if storage capacity becomes limited and exports remain restricted.
Meanwhile, preliminary inventory data in the United States showed mixed signals for oil markets. Industry figures indicated that U.S. crude and distillate inventories increased last week, while gasoline stockpiles declined. Investors are awaiting official inventory data from the U.S. Energy Information Administration for further indications about domestic supply and demand trends.
Oil markets are expected to remain volatile as traders assess the impact of military developments, shipping disruptions and inventory data. While global supply remains supported by production from several regions, continued conflict in key energy corridors could keep prices elevated and increase uncertainty for consumers, businesses and policymakers worldwide.
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