Brent crude prices were trading close to $100 a barrel on Wednesday for the first time since July, as escalating attacks across the Middle East fuelled concerns over disruptions to oil supplies from the region.
Brent crude futures rose 1.3 per cent to $99.22 a barrel by 0614 GMT, while U.S. West Texas Intermediate crude was up 1.2 per cent at $94.13 a barrel.
Brent crude prices have jumped by a quarter since early August as hopes for a permanent resolution to the six-month-old war faded and as fighting flared again.
The Middle East war intensified on Tuesday with Iranian-backed Houthis in Yemen launching strikes on several Saudi cities, further embroiling a U.S. ally in the conflict.
In a sharp escalation of the six-month-old war, U.S. forces hit multiple Iranian oil tankers and Iran targeted a U.S. base in Jordan and attacked ships.
The latest attacks threaten to deepen disruptions to Middle East oil supplies, already strained by strikes on regional energy infrastructure and key shipping lanes.
While Saudi Arabia has diverted some exports away from the Strait of Hormuz, any sustained attacks on the kingdom could complicate efforts to keep crude flowing to global markets, analysts said. (Reuters)