Oil prices rose for a third straight session Wednesday as renewed fighting between the United States and Iran heightened fears of disruptions to crude supplies from the Middle East, particularly through the Strait of Hormuz, Reuters reported.
Brent crude futures were up as much as 1.1% to $95.68 a barrel in early US trading. West Texas Intermediate crude rose 0.7% to $90.83. Before July 24, both benchmarks had reached their highest levels.
The gains came after overnight US strikes on Iranian targets and counterstrikes by Tehran, raising fears that the conflict could disrupt further shipping through the strategic waterway. Before the war, the Strait of Hormuz was responsible for about one fifth of all global oil consumption, so any long-term disruption would pose a serious risk to the energy markets.
Brent experienced its biggest one-day increase since July 24 as oil prices rose by more than $4 on Tuesday. Investors are now watching developments closely around the conflict and efforts to restore commercial shipping through the strait.
Despite geopolitical risks, US Energy Secretary Chris Wright said about 17 million barrels of oil sailed through the Strait of Hormuz on Monday, indicating some supplies are still flowing despite the tensions.
