Oil Continues to Gain as Tensions Between the U.S. and Iran Escalate

Oil prices continued to rise on Wednesday, after renewed strikes between the U.S. and Iran heightened concerns about crude supplies, with hopes of a quick de‑escalation in the Middle East fading, according to Reuters.

Brent crude futures rose by 85 cents, or 0.9%, to $95.50 per barrel by 06:45 GMT, while U.S. West Texas Intermediate crude climbed 44 cents, or 0.5%, to $90.66.

The Iranian Revolutionary Guard said that U.S. attacks would further restrict navigation through the Strait of Hormuz, a vital corridor through which about a fifth of the world's oil consumption passed before the conflict erupted, while commercial traffic there has become almost halted due to Iranian measures.

The Revolutionary Guard also said it targeted a U.S. military base in Jordan with ballistic missiles, while Iranian official media reported a large drone attack on a U.S. base in Bahrain.

Jordanian officials said their air defenses intercepted 10 of 13 ballistic missiles that entered its airspace, and two U.S. officials said there have been no reports yet of American casualties or injuries from the attacks. Kuwait, for its part, announced that its armed forces are countering drone activity.

It added: 'Until clear evidence emerges that negotiations can lead to a lasting solution and that natural oil flows through the strait are beginning to return, we expect the risk premium in crude prices to remain high.'