Oil prices climbed for a second straight session on Wednesday, with Brent crude rising above $92 a barrel, as investors weighed the risk of widening supply disruptions from the escalating Middle East conflict.
Fresh US strikes on Iran for an 11th consecutive night and an expanding Houthi threat to shipping added to concerns over the security of key global energy routes.
Brent crude futures gained $1.16 to $92.17 a barrel, while US West Texas Intermediate (WTI) crude rose 99 cents to $85.33.
Market sentiment was further shaken after some oil tankers carrying Saudi crude to Asia turned back in the Red Sea following warnings from Yemen's Iran-backed Houthi militia. The diversions highlighted growing risks to maritime traffic through the Red Sea and the Strait of Hormuz, two of the world's most strategically important energy chokepoints.
The Iran-aligned Houthis, who control much of Yemen's Red Sea coastline, have declared a naval blockade on Saudi Arabia and warned shipping companies against loading or unloading cargo at Saudi ports, threatening to target vessels that ignore the directive. The move opens a new front in the regional conflict and raises the prospect of further disruption to global oil and trade flows.
Meanwhile, the U.S. military said it had carried out its 11th consecutive night of strikes on Iranian military targets, including operations centres, maritime assets, aircraft hangars, drone storage facilities and logistics infrastructure. US Central Command (CENTCOM) said the operations were aimed at reducing Iran's ability to threaten commercial shipping in the Strait of Hormuz.
Iranian media reported explosions around Tehran early Wednesday as air defences were activated during the latest wave of attacks.
CENTCOM said Iran has attacked more than 30 commercial vessels in the Strait of Hormuz over the past three months, although the waterway remains open to commercial traffic. The command said coalition forces have helped safeguard the passage of around 900 commercial ships carrying about 450 million barrels of crude oil since early May.
The latest escalation follows Iranian attacks on US military sites in Bahrain, Kuwait and Jordan, as well as an earlier strike on a tanker in the Strait of Hormuz.
US Secretary of State Marco Rubio said Washington remains open to negotiations to end the crisis but accused Tehran of not being serious about talks. President Donald Trump also warned of further military action against Iran, including the possibility of strikes on the underground Pickaxe Mountain nuclear facility, while threatening action against the Houthis if they carry out their blockade of Saudi ports.
The intensifying conflict has heightened concerns that prolonged disruption to Gulf and Red Sea shipping could tighten global crude supplies and keep oil prices under upward pressure.
