Oil prices jump 1% as US-Iran strikes deepen fears of supply disruption
Oil prices have risen nearly 1% following military escalations between the U.S. and Iran. Fears of supply disruptions are mounting as Iran restricts shipping in the Strait of Hormuz and exchanges fire with U.S. forces.
Why it matters
Geopolitical instability in the Middle East directly impacts global energy markets, threatening to increase fuel costs and disrupt international trade routes.
Oil prices extended their sharp rally on Wednesday, rising nearly 1 per cent in early trade as the latest US-Iran military escalation heightened fears that disruptions to crude supplies could worsen.Brent crude futures rose 87 cents, or 0.92 per cent, to $95.52 a barrel by 0008 GMT, while US West Texas Intermediate crude gained 80 cents, or 0.89 per cent, to $91.02. The move came after both benchmarks surged more than $4 on Tuesday. Brent recorded its biggest daily gain since July 24, while WTI posted its strongest rise since July 23.A key concern for oil markets is the Strait of Hormuz, through which around one-fifth of the world's oil consumption passed before the conflict.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in