Oil prices rose for a fourth consecutive session during Wednesday's Asian deals, as renewed attacks across the Middle East heightened concerns about potential supply disruptions.
By 3:20 pm AEST (5:20 am GMT), Brent crude futures were up $1.08, or 1.1%, at $99.00 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 92 cents, or 1%, to $93.95 a barrel.
The Middle East conflict intensified on Tuesday after Iranian-backed Houthi militants in Yemen launched strikes on several Saudi cities, further drawing the U.S. ally into the escalating conflict.
Meanwhile, U.S. forces struck multiple Iranian oil tankers, while Iran targeted a U.S. base in Jordan, adding to concerns over the potential impact on regional energy supplies.
ING commodities strategists noted in 'The Commodities Feed':
"Recent developments only reinforce the view that we’re still some way from a restart in talks. In the meantime, the market is likely to continue to price in a sizeable risk premium.
"Despite the escalation, estimates on oil flows through the Strait of Hormuz are edging higher, with suggestions that flows are in the region of 10m b/d - 50% of pre-war levels.
"These volumes now look far more in line with what the U.S. previously indicated was moving through the vital choke point."
