Oil prices gain as US announces another round of Iran strikes

Oil prices rose slightly on Wednesday as concerns over possible supply disruptions grew amid continued fighting between the US and Iran.

Brent crude futures increased by 0.55%, or 50 cents, to $91.51 a barrel, while US West Texas Intermediate (WTI) crude rose 0.36%, or 30 cents, to $84.64 in low-volume trading.

The rise came after oil prices reached a five-week high on Tuesday following US strikes on targets in southern and western Iran. Iran also attacked US facilities in Bahrain, Kuwait and Jordan.

The US military said it had completed another round of strikes on Iran, marking the 11th consecutive night of attacks. Around the same time, Kuwait’s military said its air defence systems were intercepting Iranian drones.

The ongoing attacks have increased fears of further disruptions to global oil supplies. Yemen’s Houthis have also threatened to target vessels carrying Saudi oil in the Bab el-Mandeb Strait and announced a naval blockade of Saudi Arabia.

The Bab el-Mandeb Strait, located at the southern entrance to the Red Sea, has become more important for Saudi oil exports as shipping through the Strait of Hormuz has dropped sharply since the US-Iran ceasefire collapsed earlier this month.

Meanwhile, US Defence Secretary Pete Hegseth said the war in Iran has cost the United States $37.5 billion so far, nearly $8 billion more than the previous public estimate.

Data from the American Petroleum Institute showed that US crude oil and distillate inventories increased last week, while gasoline stocks declined. Official inventory figures from the US Energy Information Administration were expected later on Wednesday.