US-Iran Conflict Escalation Drives Oil Prices Higher

The US-Iran conflict has escalated, causing oil prices to surge as Brent crude futures settled up 1% at $95.63 a barrel and US West Texas Intermediate crude rose 0.9% to settle at $91.01.

The recent attacks between the US and Iran are the most significant since July, with both sides targeting each other's positions across the region.

Mark Schaefer, 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.

The Strait of Hormuz, a critical waterway carrying about a fifth of global oil and LNG consumed, has seen restricted traffic due to the conflict, with only four commodity vessels transiting the strait on Wednesday compared to the 10-day average of around 13.