Global oil prices continued to rise for a third consecutive trading session as growing tensions between the United States and Iran increased concerns about potential disruptions to energy supplies in the Middle East.
The latest price surge followed reports of military exchanges between the two countries. According to official statements, Iran launched drone and missile attacks targeting U.S. military positions in the region. In response, the United States reportedly carried out strikes against several locations linked to Iranian interests near Qeshm Island.
After Asian markets opened on Wednesday, Brent crude oil gained nearly 2%, with prices reaching $97.06 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) crude rose by more than one dollar, trading at $94.89 per barrel. The gains reflected growing market concerns over geopolitical instability in one of the world’s most important oil-producing regions.
The U.S. Central Command stated that Iranian drones and missiles targeted facilities in Kuwait and Bahrain. However, officials said defensive systems successfully intercepted and responded to the attacks. At the same time, Iran’s Revolutionary Guard announced that it had targeted the headquarters of the U.S. Fifth Fleet.
The recent escalation has raised doubts about efforts to ease tensions between the two countries. Just last week, both Washington and Tehran indicated they had reached a preliminary understanding aimed at reducing hostilities and moving toward a ceasefire arrangement. Despite those signals, neither side has signed a formal agreement.
Market analysts believe the renewed confrontation has changed investor expectations. Chris Weston, Head of Research at Pepperstone in Melbourne, noted that financial markets had become increasingly optimistic about the possibility of a diplomatic breakthrough. However, the latest developments have created fresh uncertainty.
Analysts now expect negotiations to continue under more difficult conditions. Investors are closely monitoring the situation because any further escalation could threaten oil production and transportation routes. As a result, oil markets remain highly sensitive to new developments, helping keep crude prices on an upward trajectory.
