Oil prices rise 1pc as geopolitical tensions disrupt ME supply

Oil prices rose 1 per cent on Wednesday as the US-Israeli war on Iran disrupted Middle East supplies, but the pace of gains slowed from past sessions after President Donald Trump raised the possibility of the US Navy escorting vessels through the Strait of Hormuz.

Brent rose $1.17, or 1.4pc, to $82.57 a barrel by 04:08 GMT, after closing at its highest since January 2025 on Tuesday.

US West Texas Intermediate crude rose 72 cents, or 1pc, to $75.28, after settling at its highest since June. Both rose by around 5pc or more in the past two sessions.

“Right now, geopolitics has clearly overtaken the usual price drivers like inventory data, US economic numbers or Opec commentary,” Phillip Nova senior market analyst Priyanka Sachdeva said.

“In the near term, the key pointers to watch are physical export data from the Gulf, any confirmed tanker incidents, US naval movement, and Iran’s tone,” she added.

Israeli and US forces struck targets across Iran on Tuesday, prompting retaliatory Iranian strikes against energy infrastructure in a region that accounts for just under a third of global oil production.

Iraq, the second-largest crude producer in the Organization of the Petroleum........

© Dawn Business