Oil up nearly 1% as US and Iran trade fresh strikes

Oil prices surged nearly 1 percent on Wednesday, extending the previous day's gains, as tensions between the United States and Iran escalated following a series of strikes. Brent crude futures climbed 87 cents, or 0.92 percent, to $95.52 a barrel, while US West Texas Intermediate crude futures rose 80 cents, or 0.89 percent, to $91.02.

Both contracts had jumped more than $4 the previous day, marking Brent's largest gain since July 24 and WTI's largest since July 23. The US claimed it had launched airstrikes against targets in Iran overnight, sparking an Iranian counterattack, marking the most serious escalation of the conflict in weeks. The strikes followed recent IRGC attacks on commercial shipping in the Strait of Hormuz and against American service members in the region.

The IRGC warned that US attacks would further restrict traffic through the crucial waterway, which carries about one-fifth of the global oil supply and is often closed by Iran to commercial vessels. Iran also accused the US of targeting a military base in Jordan with ballistic missiles, claiming numerous American casualties, though Jordan's military reported intercepting 10 of 13 missiles that entered its airspace, and no US casualties were reported.

The latest round of hostilities followed a weekend flare-up, marking the first significant conflict since July, and came after attacks on two tankers departing the Strait of Hormuz on Monday, further disrupting oil supplies and prompting traders to seek alternative crude shipments.