Precise Investors Editorial Team
Brent Oil Futures expiring in November rose 1.4% to $99.32 per barrel
Oil prices extended their rally in Asian trading on Wednesday, with Brent crude hovering near $100 a barrel as escalating U.S.-Iran hostilities raised fears of deeper disruptions to Gulf oil supplies and shipping.
As of 01:32 GMT, Brent Oil Futures expiring in November rose 1.4% to $99.32 per barrel. The benchmark is at its highest levels in weeks.
The latest gains came after the U.S. on Tuesday said it had attacked Iranian oil tankers following Iranian attacks on U.S. naval assets.
Iran then struck U.S. targets in Jordan, while Tehran warned Gulf states including Kuwait and Bahrain against supporting U.S.
The escalation followed attacks by Houthi forces on Saudi Arabia on Tuesday, which hit energy and economic facilities in several southern cities and injured more than 70 people.
Saudi authorities said fires broke out at energy sites, including the Jazan refinery, although the full extent of the disruption remained unclear.
The U.S. Secretary of State said on Tuesday that Washington would continue attacking Iranian oil tankers in retaliation for strikes on U.S. warships.
The attacks have added to already severe disruption around the Strait of Hormuz, a critical conduit for international oil flows. Shipping traffic through the waterway slowed sharply after Iran threatened retaliation for further U.S. attacks, reports showed.
Meanwhile, Iran has said it plans to establish a maritime exclusion zone around the Strait of Hormuz.
Flows through Hormuz have also dropped, although some shipments continue and Gulf producers have sought to use alternative routes and ports.
That continued flow has so far prevented Brent from decisively breaking above $100, despite the sharp deterioration in the security environment.
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