Oil prices rise as hostilities worsen in the Middle East
XLE•Oil extends gains on Middle East escalation
Oil extended gains on Wednesday as President Donald Trump reimposed a naval blockade on all Iranian ports and Tehran launched strikes on U.S. infrastructure in the region.
Brent futures LCOc1 climbed 99 cents, or 1.2%, to $85.72 a barrel at 0400 GMT. West Texas Intermediate futures CLc1 gained 64 cents, or 0.8%, to $79.98 a barrel.
Oil prices closed up 2% at a one-month high on Tuesday as attacks exacerbated a supply disruption in the Strait of Hormuz, through which about a fifth of the world's oil and liquefied natural gas passed prior to the beginning of the U.S.-Israeli war on Iran.
"While the physical oil market remains adequately supplied, any further escalation involving the Strait of Hormuz or additional sanctions on Iranian exports could quickly tighten market sentiment and add further risk premiums," said Priyanka Sachdeva, senior market analyst at Phillip Nova.
