Oil prices rose in early trading on Wednesday, with Brent crude reaching USD 91.51 and West Texas Intermediate hitting USD 84.64 as escalating U.S.-Iran attacks raised supply concerns.
Brent futures gained 0.55%, or USD 0.50, while U.S. West Texas Intermediate increased 0.36%, or USD 0.30, in low-volume trading on July 22.
The gains followed a five-week closing high on Tuesday. The U.S. military said it had completed an 11th consecutive night of strikes against Iranian military targets.
Kuwait’s armed forces said air defences intercepted Iranian drones on Wednesday. Iran had earlier attacked U.S. facilities in Bahrain, Kuwait and Jordan.
Supply concerns also intensified after Yemen’s Houthis threatened vessels carrying Saudi oil through the Bab el-Mandeb Strait and announced what they described as a naval blockade of Saudi Arabia.
The Red Sea passage has become more important for Saudi crude exports, as shipping through the Strait of Hormuz has fallen since the U.S.-Iran ceasefire collapsed earlier in July.
Read: Oil Prices Ease as Truce Hopes Offset Houthi Blockade Risk
American Petroleum Institute data showed that U.S. crude and distillate inventories increased last week, while gasoline stocks declined, market sources said.
Traders awaited official inventory figures from the U.S. Energy Information Administration later Wednesday.
