Oil prices extended gains on Wednesday, as escalating tensions in the Middle East following US and Israeli strikes on Iran disrupted regional energy output and heightened concerns over potential supply disruptions.
Brent crude futures rose $2.67, or 3.3%, to $84.07 a barrel, after reaching their highest level since January 2025 in the previous session.
US West Texas Intermediate (WTI) crude climbed $2.24, or 3%, to $76.80 a barrel, after settling at its highest level since June 2025.Both benchmarks have gained about 5% or more over the past two sessions amid mounting geopolitical risks and fears of supply disruptions from the region.
Since Saturday, the United States and Israel have carried out strikes on multiple targets across Iran, prompting Tehran to launch retaliatory missile and drone attacks against Israel and other locations in the region.
Iran also targeted oil tankers in the Strait of Hormuz -- a critical maritime chokepoint through which roughly one-fifth of the world's oil and liquefied natural gas supplies transit. Shipping traffic through the strait remained suspended for a fourth consecutive day following attacks on five vessels.
Meanwhile, US President Donald Trump said the US Navy could begin escorting oil tankers if necessary, and directed the US International Development Finance Corporation to provide insurance coverage and financial guarantees for maritime trade passing through the Gulf.