Oil prices rose slightly in early trading on Wednesday as concerns over potential supply disruptions intensified after the United States announced a new round of airstrikes on Iranian military targets for the 11th consecutive night, while Kuwait reported fresh Iranian drone attacks.
Brent crude futures gained 50 cents, or 0.55%, to $91.51 per barrel, while U.S. West Texas Intermediate (WTI) crude rose 30 cents, or 0.36%, to $84.64 per barrel in light trading.
The gains followed Tuesday’s settlement, when oil prices reached their highest level in five weeks after U.S. forces struck military targets in southern and western Iran, while Tehran launched attacks against U.S. facilities in Bahrain and Kuwait.
The U.S. military said it began its latest wave of airstrikes late Tuesday U.S. time, corresponding to early Wednesday in Iran.
The strikes came shortly after the Kuwaiti military announced that its air defenses had intercepted Iranian drones earlier in the day.
The exchange of attacks has heightened concerns over further disruptions to global energy supplies after Yemen’s Houthis opened a new front in the Iran-linked conflict by threatening to target vessels carrying Saudi oil through the Bab el-Mandeb Strait and announcing a maritime blockade against Saudi Arabia.
The Bab el-Mandeb Strait, at the southern entrance to the Red Sea, has become increasingly important for Saudi crude exports as traffic through the Strait of Hormuz has fallen sharply following the collapse of the U.S.-Iran ceasefire earlier this month.
Meanwhile, U.S. Defense Secretary Pete Hegseth said the U.S. military campaign against Iran has so far cost $37.5 billion, nearly $8 billion more than the last publicly released estimate.
Market sources, citing data from the American Petroleum Institute (API), said U.S. crude oil and distillate inventories increased last week, while gasoline stockpiles declined.
Investors are now awaiting official U.S. inventory figures due later on Wednesday from the Energy Information Administration (EIA).
Source: Agencies
