Oil prices climb as Brent tops $95 on US-Iran tensions

Oil prices rose 0.8% in early trading on Wednesday, extending the previous session’s surge as concerns mounted over potential supply disruptions following overnight strikes exchanged between the United States and Iran.

Brent crude futures increased by 75 cents, or 0.8%, to $95.40 per barrel, while US West Texas Intermediate (WTI) futures climbed 44 cents, or 0.5%, to $90.66.

According to Reuters, both benchmarks jumped more than $4 on Tuesday, marking Brent’s biggest gain since July 24 and WTI’s largest since July 23.

The United States launched a series of airstrikes on targets in Iran overnight, prompting a response from Iran in what analysts described as the most serious escalation between the two countries in weeks.

The latest exchange of strikes followed an escalation in hostilities over the weekend—the first since July—and came after attacks on two oil tankers departing the Strait of Hormuz on Monday, further disrupting oil supplies and forcing traders to seek alternative crude shipments.

According to the agency, analysts at ING said in a client note that recent developments have brought regional oil supply risks back into focus. They noted that oil continues to flow through the Strait of Hormuz despite the standoff between the US and Iran, but rising tensions clearly threaten the passage.

Market sources citing data from the American Petroleum Institute reported that crude inventories fell by 2.6 million barrels in the week ending August 28, while distillate stocks—including diesel and heating oil—declined by 265,000 barrels.