US-Iran Tensions Shake Oil Markets as Crude Prices Surge More Than $4 in a Day

LONDON: Global oil prices continued to rise after fresh overnight military exchanges between the United States and Iran intensified fears of supply disruptions across the Middle East.

According to Reuters, Brent crude rose 75 cents, or 0.8 percent, in early trading to reach $95.40 per barrel.

US West Texas Intermediate (WTI) crude also gained 44 cents, or 0.5 percent, to trade at $90.66 per barrel.

The latest gains came after an unusually strong rally in the previous session, when both major global crude benchmarks climbed by more than $4 per barrel.

Brent recorded its biggest one-day increase since July 24, while WTI posted its strongest daily gain since July 23.

The sharp rise reflects growing concerns among investors that the escalating US-Iran confrontation could disrupt oil production, exports and shipping routes across the region.

The latest exchange of attacks has reduced hopes of a quick de-escalation between Washington and Tehran.

Investors are increasingly focused on the possibility that a prolonged or wider conflict could affect energy infrastructure and the movement of crude from the Middle East, one of the world’s most important oil-producing regions.

Any major disruption to regional production or maritime transport could have a significant impact on global oil supplies and push prices substantially higher.

Market attention is also focused on the Strait of Hormuz, a critical maritime route for global energy shipments.

Any prolonged military confrontation that restricts commercial shipping through the waterway could trigger renewed concerns over the availability of crude and other energy supplies.

With US-Iran military operations continuing, traders are preparing for increased volatility in the oil market.

Analysts and investors are likely to closely monitor further developments, particularly any attacks on energy infrastructure, disruptions to shipping or expansion of the conflict to other countries in the region.

If tensions continue to escalate, oil prices could face further upward pressure as markets price in the growing risk of supply disruptions.