Oil Prices Today: Brent is edging closer to the psychologically important $100-a-barrel mark, with the latest escalation in the US-Iran war adding fresh fuel to oil's rally.
Last checked, the global benchmark was trading 1.1% higher at $96.25 a barrel on Wednesday, while US West Texas Intermediate (WTI) crude gained 1.46% to $91.54 a barrel.
Back home, oil and gas stocks are likely to remain in focus as Brent moves closer to $100, with investors assessing the impact of higher crude prices on margins and fuel costs.
The latest move follows a sharp rally on Tuesday, when Brent jumped around 4.5% to $94.52 a barrel and WTI climbed nearly 5% to $90.03, as the US carried out fresh strikes against Iranian targets.
ALSO READ: US Launches Fresh Strikes On Iran Hours After Oil Tankers In Hormuz Come Under Attack
The US Central Command said American forces had begun striking Islamic Revolutionary Guard Corps (IRGC) targets in Iran, following attempted attacks by the IRGC on commercial shipping in the Strait of Hormuz and US service members in the region.
Shipping risks have also intensified. A tanker was hit by three unidentified projectiles while transiting the Strait of Hormuz on Monday, according to the UK Maritime Trade Operations Centre. No casualties were reported.
The latest escalation comes after Iran launched attacks on two US bases in Jordan in retaliation for an earlier US strike on Iran's Larak Island. The island sits in the strategically important Strait of Hormuz and has been a key military and shipping control point for Iranian forces.
While neither Washington nor Tehran appears to be seeking a return to full-scale war, both sides have signalled a willingness to retaliate against further attacks. US President Donald Trump has warned that there would be a response to Iran's attacks on American military bases.
Analysts reportedly have largely viewed the US strike on Larak Island as an attempt to break the current deadlock rather than a fundamental shift in Washington's broader strategy.
For oil markets, however, any sustained disruption around the Strait of Hormuz could considerably increase supply-risk premiums.
ALSO READ: 'Very Little Left': Trump Vows Ultimate Destruction If Iran Escalates After Fresh Flare-Up
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