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Global crude oil prices traded higher by around 1% on Wednesday as escalating tensions between the United States and Iran rattled energy markets and revived fears of potential disruptions through the strategically vital Strait of Hormuz.
Brent crude rose to approximately $93.26 per barrel, while US West Texas Intermediate (WTI) climbed 0.97% to trade near $90 per barrel.
The gains followed reports that the US military had conducted what it described as self-defence strikes targeting Iranian air defence systems, ground control units and surveillance radar installations in the region.
The operation, according to US Central Command, was carried out in response to the reported downing of a US Army Apache helicopter.
Iranian authorities denied responsibility for the incident, stating that the helicopter crash was accidental.
The development has intensified already fragile relations between Washington and Tehran, reversing expectations of a gradual de-escalation in West Asia.
Renewed uncertainty around the Strait of Hormuz, a key route for global oil shipments, has added a risk premium to crude prices.
Investor sentiment stayed weak as geopolitical tensions weighed on broader financial markets.
US crude inventories fell for an eighth straight week, reinforcing supply concerns.
Asian equity markets declined, with Japan’s Nikkei and Hong Kong’s Hang Seng falling over 1%, while South Korea’s KOSPI dropped nearly 4%.
On Wall Street, the Nasdaq Composite slipped 0.97%, and the S&P 500 eased 0.26% in the previous session.
In contrast, domestic equity markets showed relative resilience in early trade, with benchmark indices in India gaining up to 0.5% in the morning session despite global headwinds driven by geopolitical uncertainty and energy market volatility.
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