US-Iran Conflict Escalates, Oil Prices Rise on Global Supply Concerns

Oil prices rose by 1% on Wednesday as tensions between the US and Iran escalated, threatening global oil supplies.

The conflict has been ongoing for seven months, with the latest exchange of fire being the biggest since July. The US struck at Iranian radar and mine-laying capabilities, while Iran retaliated against American positions across the region.

Brent crude futures settled up 98 cents, or 1%, at $95.63 a barrel, while US West Texas Intermediate crude futures rose 79 cents, or 0.9%, to settle at $91.01. The session highs for both benchmarks were the highest since July 24.

Mark Schaefer, a director at brokerage Liquidity Energy, noted that 'the key concern for the oil market is whether the renewed fighting leads to another deterioration in physical flows through the region.'