MANILA — Oil prices edged higher on Wednesday as mounting geopolitical tensions and retaliatory military strikes in the Middle East fueled fresh fears of global energy supply disruptions.
Brent crude futures rose 0.55% (50 cents) to $91.51 per barrel, while U.S. West Texas Intermediate (WTI) crude climbed 0.36% (30 cents) to $84.64 in low-volume early trading. The slight uptick follows Tuesday's settlement at a five-week high, driven by persistent exchange-of-fire between American and Iranian forces.
The U.S. military confirmed it initiated its 11th consecutive night of airstrikes against Iranian military targets late Tuesday. The latest barrage occurred shortly after the Kuwaiti military reported its air defense systems had successfully intercepted incoming Iranian drones.
Market anxiety has been compounded by Yemen's Iran-aligned Houthi militia, which opened a new front in the conflict by declaring a naval blockade against Saudi Arabia and threatening to target crude tankers in the Bab el-Mandeb Strait. The waterway at the southern mouth of the Red Sea serves as a critical alternative route for Saudi oil exports, particularly as maritime traffic through the Strait of Hormuz remains severely restricted following the collapse of the U.S.-Iran ceasefire earlier this month.
Meanwhile, U.S. Defense Secretary Pete Hegseth disclosed that Washington's military operations in Iran have reached $37.5 billion so far—an increase of nearly $8 billion over previous official estimates.
On the supply side, industry data from the American Petroleum Institute indicated that U.S. crude and distillate inventories increased last week while gasoline stocks fell. Official weekly inventory figures from the U.S. Energy Information Administration are scheduled for release later Wednesday.
Alma Angeles/NET25 News with a report from Reuters
References:
- Source: Reuters / NET25 News
- Market Data: American Petroleum Institute (API) / U.S. Energy Information Administration (EIA)
