Oil prices rose nearly 1 percent in early trading on Wednesday, extending the previous session’s sharp gains as fresh US-Iran strikes raised fears of further disruptions to global crude supplies.
Brent crude futures gained 87 cents, or 0.92 percent, to $95.52 a barrel by 0008 GMT. US West Texas Intermediate (WTI) crude rose 80 cents, or 0.89 percent, to $91.02 a barrel.
Both benchmarks jumped more than $4 on Tuesday. It was Brent’s biggest daily increase since July 24 and WTI’s strongest gain since July 23.
The latest rise came after the United States and Iran exchanged strikes overnight in the most serious escalation between the two countries in weeks.
The US said it had carried out a series of airstrikes on targets in Iran after what it described as attempted attacks by Iran’s Islamic Revolutionary Guard Corps (IRGC) on commercial shipping in the Strait of Hormuz and on US troops in the region.
Iran responded with missile and drone attacks on US military positions in the region. The IRGC said the US strikes would further restrict traffic through the Strait of Hormuz, a key oil shipping route that carried about one-fifth of global oil consumption before the conflict.
Jordan said its air defences intercepted 10 of 13 ballistic missiles that entered its airspace. Two US officials said there were no reported American casualties from the attacks. Kuwait also reported hostile drone activity.
The latest escalation came after two tankers leaving the Strait of Hormuz were attacked on Monday, adding to concerns about oil shipments and prompting traders to look for alternative supplies.
US crude inventories also provided some support to prices. Commercial crude stocks fell by 2.6 million barrels in the week ended August 28, according to data from the American Petroleum Institute cited by market sources.
Distillate inventories, which include diesel and heating oil, also fell by 265,000 barrels.
Read next: Oil prices retreat as producers ramp up production