US crude rises continued for a third day on Wednesday, with futures up about 2% at $95.40 a barrel after fresh Gulf hostilities raised fears over oil supply routes.
The move came after reports that Iran fired missiles at Kuwait and Bahrain, while US forces struck Iran’s Qeshm Island near the Strait of Hormuz. The escalation followed stalled US-Iran peace talks.
Market pressure also grew after US crude inventories fell by 6.8 million barrels in the week ended May 29, according to market sources, American Petroleum Institute data released Tuesday. Official US government stockpile data was due at 10:30 am ET (7:30 pm PKT) on Wednesday.
ANZ senior commodity strategist Daniel Hynes said efforts to reopen the Strait of Hormuz face challenges because Iran had mined large portions of the waterway. He said vessel movement had increased slightly, but total transits remained well below pre-conflict levels.
Read: Oil Prices Rise Over 2% After Israel Expands Lebanon Push
Currency markets also reflected the risk-off mood. The dollar briefly touched 160 yen before easing to 159.86, as traders watched for possible Japanese intervention near that level.
Bitcoin fell nearly 10% over three sessions to $66,123, while S&P 500 futures dipped. Asian technology shares remain advanced, supported by the artificial intelligence rally in Taiwan and Japan.
