Geopolitical tensions lift oil prices after US attacks on Iran

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London: Oil prices rose for the second day in a row on Wednesday, as new US military attacks on Iran revived worries about Middle Eastern unrest, boosting concerns about potential disruptions to global crude supplies. The increases occurred as investors closely monitored developments in the Strait of Hormuz, one of the world's most crucial oil transit routes.

Brent crude futures soared above $76 per barrel, while US West Texas Intermediate (WTI) crude traded above $72 per barrel, adding on gains from the previous session. The protest came after the United States launched strikes against Iranian military installations in response to attacks on commercial vessels passing the Strait of Hormuz, which transports about one-fifth of global oil and fuel supplies.

Energy markets have been shaken by the resumed confrontations because traders fear that any escalation may jeopardise shipping in the vital waterway or cause more disruptions to Gulf oil supplies. Tensions between Washington and Tehran have escalated, raising concerns about the world's energy supplies even though Iran has denied any involvement in the attacks on commercial ships.

According to analysts, recent developments have made investors reevaluate their hopes that oil markets would continue to be adequately supplied after previous indications of a fall in hostilities. A recent drop in US crude inventories, which suggested tighter supply circumstances, also raised concerns.

Market participants are expected to stay vigilant on further military actions and the impact on shipping through the Strait of Hormuz, as further volatility in the region may keep oil prices high in the coming days.