Key Points
- Oil prices rebounded by 1 per cent after renewed Iran-US military-related tensions in the Gulf region
- Brent crude traded near 92–93 dollars per barrel, while WTI hovered around 88–90 dollars per barrel
- Markets reacted cautiously, as fears of supply disruption increased but no actual flow interruption was confirmed
ISLAMABAD: Oil prices rose on Wednesday after renewed military tensions between Iran and the United States heightened concerns over potential disruptions to energy supplies from the Gulf region.
Brent crude futures gained about 0.7–1 per cent to trade near 92–93 dollars per barrel, while West Texas Intermediate rose roughly 0.8–1.2 per cent, hovering around 88–90 dollars per barrel.
The movement extended a period of heightened volatility driven by geopolitical developments in the region.
The uptick followed reports of renewed Iran-US military tensions in and around the Gulf region, which market participants said raised fears of escalation, which could affect key oil shipping routes.
Traders reacted quickly by adding a fresh geopolitical risk premium to crude prices.
Attention remained firmly focused on the Strait of Hormuz, a critical chokepoint for global oil shipments, where even limited instability has historically triggered sharp market reactions.
However, no confirmed disruption to oil flows or production infrastructure has been reported so far.
Analysts said the limited size of the price increase reflected a cautious market response.
Investors appeared to be balancing escalation risks against the absence of concrete supply losses after US claims of nearing a “very good” peace deal with Iran.
The situation has kept oil markets in a fragile, reactionary state, where prices respond rapidly to headlines but struggle to sustain strong directional moves.
Overall, the latest gains reflect how sensitive global energy markets remain to Iran-US tensions.
The geopolitical developments continue to act as the dominant driver of short-term price movements.
