Global crude oil prices moved higher on Wednesday after Iran launched retaliatory attacks against US interests in the Middle East following renewed American strikes.

The latest escalation has increased concerns over possible disruptions to energy supplies, particularly through the strategically important Strait of Hormuz, a major route for global oil and gas shipments.

Brent crude rose 1.9 per cent to $96.45 per barrel, while US West Texas Intermediate gained 1.5 per cent to $91.60 per barrel at about 0230 GMT.

Oil prices have now climbed by roughly 10 per cent this week as investors react to the worsening confrontation between Washington and Tehran.

The renewed fighting followed a period of relative calm and stalled diplomatic efforts. The United States had earlier intensified pressure on Iran, while military exchanges have once again raised fears of a prolonged disruption to shipping through the Strait of Hormuz.

The waterway is particularly significant to the global energy market because approximately one-fifth of the world’s oil and gas supplies pass through it.

With shipping activity through the strait severely restricted, concerns are growing that prolonged disruption could keep energy prices elevated and add to inflationary pressures across the global economy.

Iran Launches Retaliatory Attacks

Iran carried out attacks against US-linked targets across parts of the Middle East on Wednesday after Washington conducted fresh strikes against Iranian positions.

Iranian media reported that ballistic missiles were fired at two US bases in Jordan. Jordan’s military said it intercepted 10 missiles and reported that three others landed in remote locations.

Additional missile and drone activity was reported in Kuwait, while air-raid alerts were heard in Bahrain.

Iran’s Revolutionary Guards also said they attacked US military installations in Iraq’s autonomous Kurdistan region. The group claimed that missiles and drones struck American positions, damaging a maintenance facility, warehouses and equipment.

The latest exchanges followed US attacks that began over the weekend, including strikes on Iranian targets on Larak Island in the Strait of Hormuz.

Washington said the operation was intended to prevent Iran from placing sea mines in key shipping lanes.

Rising Market Pressure

The renewed conflict has also affected global financial markets, with stocks declining while government bond yields remained elevated.

Asian markets recorded widespread losses, with technology stocks among the major decliners. Markets in Tokyo, Seoul, Hong Kong, Shanghai and several other financial centres came under pressure.

Investors are also assessing the possible effect of higher energy prices on inflation and interest rates.

Market participants are now placing greater bets on another US interest-rate increase, with attention focused on upcoming inflation and employment data that could influence the Federal Reserve’s next policy decision.

The prospect of higher borrowing costs has added pressure to government bonds and equities as investors attempt to assess the wider economic consequences of the conflict.

Strait of Hormuz Remains Key Concern

The continued closure of the Strait of Hormuz remains a major source of uncertainty for energy markets.

The waterway has been at the centre of the confrontation, with Iran maintaining restrictions on shipping while the United States continues its blockade of Iranian ports.

Two crude oil tankers were reportedly struck by unidentified projectiles, according to maritime risk-management firm Marisks. The United Kingdom Maritime Trade Operations agency confirmed one of the incidents but said there were no reported casualties or environmental damage.

US President Donald Trump has warned Iran that further retaliation would trigger an even stronger American response.

Iranian officials, meanwhile, have threatened more extensive action against countries that assist the United States.

Despite the renewed military confrontation, Iranian President Masoud Pezeshkian has said Tehran remains prepared to respond to any US move towards an agreement aimed at ending the conflict.

He also warned that continued pressure and threats from Washington could undermine diplomatic efforts.

For oil markets, the immediate concern remains whether the conflict will further restrict tanker traffic through the Strait of Hormuz. Any prolonged disruption could place additional upward pressure on crude prices and intensify inflation concerns globally.