By COMFORT OGBONNA
Oil prices climbed in early trading Wednesday, extending a sharp rally from the previous session as renewed military strikes between the United States and Iran increased fears of disruptions to crude supplies and reduced expectations that tensions in the Middle East would ease quickly.
Brent crude futures rose $1.03, or 1.1%, to $95.68 a barrel by 6:05 a.m. GMT. U.S. West Texas Intermediate crude gained 61 cents, or 0.7%, to $90.83 a barrel.
Both benchmarks surged by more than $4 on Tuesday. Brent recorded its biggest one-day increase since July 24, while West Texas Intermediate posted its strongest gain since July 23.
The latest price increases came after the United States carried out a series of overnight airstrikes against targets in Iran, prompting Tehran to respond with attacks on U.S. military positions in the region.
The exchange of strikes marked one of the most serious escalations between the two countries in several weeks and raised fresh concerns about the potential impact on oil production, transportation and exports from the Middle East.
The Strait of Hormuz has become a particular focus for energy markets. The narrow waterway is one of the world’s most important oil shipping routes, with roughly one-fifth of global oil consumption passing through it before the conflict intensified.
Iran has effectively restricted commercial shipping through the strait, creating concerns among traders that further military escalation could make it even more difficult for tankers to move crude and petroleum products through the region.
The Islamic Revolutionary Guard Corps warned that the latest U.S. attacks would lead to tighter restrictions on traffic through the waterway.
The prospect of prolonged disruption has added a significant risk premium to oil prices. Traders are closely watching developments around the strait because even a temporary interruption could have a major impact on global energy markets.
Analysts said oil had continued to move through the waterway despite the standoff between Washington and Tehran, but warned that the latest escalation could place those shipments at greater risk.
The Middle East supplies a substantial share of the world’s crude oil, meaning any sustained disruption could force refiners and major importers to compete for alternative supplies.
The military escalation also raised concerns about the possibility of the conflict spreading beyond Iran and directly affecting U.S. military installations and other countries in the region.
The Iranian Revolutionary Guard said it had launched ballistic missiles at a U.S. military base in Jordan and claimed that the attack had killed a large number of American personnel. Those claims were not immediately confirmed by U.S. officials.
Iranian state media also reported a large-scale drone attack against a U.S. base in Bahrain, describing the strikes as retaliation for the American attacks on Iran.
Jordan’s military said its air defenses intercepted 10 of 13 ballistic missiles that entered its airspace. Two U.S. officials said there were no reported American casualties from the attacks at the time.
Kuwait separately said its armed forces were responding to hostile drone activity, adding to concerns that the conflict could increasingly affect countries across the Gulf region.
For oil markets, the central concern remains whether the military escalation will interfere with the movement of crude through the Strait of Hormuz or affect production facilities in the region.
A prolonged disruption could push crude prices substantially higher and increase fuel costs for consumers and businesses around the world. Higher energy prices could also complicate efforts by central banks to control inflation, particularly if gasoline, diesel and transportation costs rise sharply.
Market participants are therefore watching both military developments and any signs that diplomatic efforts could prevent further escalation.
For now, however, the renewed exchange of attacks has strengthened fears that the conflict could last longer than previously expected, keeping pressure on oil prices and adding uncertainty to an already fragile global energy market.
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