Oil prices climbed further on Wednesday after escalating tensions between the U.S. and Iran raised concerns over supply disruptions in the Gulf region.
Brent crude futures rose 56 cents, or 0.8%, to $67.89 per barrel at 0400 GMT, while U.S. West Texas Intermediate (WTI) crude gained 63 cents, or 1.0%, reaching $63.84 per barrel. Both benchmarks had surged nearly 2% on Tuesday amid market jitters.
The uptick follows the U.S. military shooting down an Iranian drone that reportedly approached the Abraham Lincoln aircraft carrier in the Arabian Sea. In a separate incident, armed Iranian gunboats approached a U.S.-flagged tanker in the Strait of Hormuz, the critical maritime chokepoint connecting the Persian Gulf to the Gulf of Oman.
Analysts warn that market uncertainty persists. ING commodity strategists noted, “Uncertainty about how these talks will play out means the market will likely continue to price in some risk premium.”
The incidents come amid ongoing scrutiny of Gulf security, a key factor for global energy markets given the region’s central role in crude exports.
