Energy markets on edge as Middle East conflict escalates
Global oil prices climbed sharply in early trading on Wednesday as renewed military tensions in the Middle East heightened concerns over potential disruptions to energy supplies.
Brent crude futures rose 1.09% to $97.05 per barrel, while U.S. West Texas Intermediate (WTI) crude gained 1.08% to $94.77 per barrel. Both benchmarks had already closed at their highest levels in a week during the previous session, News.az reports.
The latest gains followed reports of Iranian missile launches toward Kuwait and Bahrain, alongside U.S. strikes on targets on Iran's Qeshm Island. The escalation has increased uncertainty across energy markets, with investors closely monitoring developments in the region.
Market participants are also watching diplomatic efforts aimed at ending the conflict between Iran and the United States. However, limited progress in negotiations and continued military activity have fueled concerns that tensions could intensify further.
Analysts warn that the situation around the Strait of Hormuz remains one of the biggest risks to global energy markets. The strategic waterway handles a significant share of the world's oil shipments, and any prolonged disruption could have major consequences for global supply chains.
Experts note that continued instability in the region could trigger further increases in oil prices, particularly if shipping activity through the Strait of Hormuz remains below normal levels or if hostilities expand.
Supply concerns have been amplified by a decline in U.S. crude inventories, which reportedly fell for a seventh consecutive week. The combination of shrinking stockpiles and geopolitical uncertainty is adding upward pressure to prices.
Energy market analysts caution that a broader escalation of the conflict or significant disruptions to maritime traffic could push oil prices above the $100-per-barrel threshold in the coming weeks, increasing risks for the global economy and inflation outlook.
By Faig Mahmudov
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