U.S. oil prices climbed nearly 3% in early trading on Wednesday, extending gains from the previous session after the U.S. military launched a series of strikes against Iran, raising concerns that a fragile truce in the region was beginning to unravel.
According to U.S. Central Command, the strikes were carried out in response to Iranian attacks on three commercial vessels transiting the Strait of Hormuz on Tuesday.
U.S. West Texas Intermediate (WTI) crude rose $1.95, or 2.8%, to $72.39 per barrel as of 2215 GMT.
WTI had already settled 2.8% higher on Tuesday before extending gains in after-hours trading following the U.S. decision to revoke the general licence authorising the sale of Iranian crude in the wake of the attacks.
Qatar accused Iran of targeting commercial vessels, including the Qatari liquefied natural gas tanker Al Rekayyat, which reportedly caught fire in its engine room after being struck by a drone. All crew members were reported safe and were being evacuated.
A Saudi-flagged crude oil tanker, believed to be the supertanker Wedyan, was also reported damaged off the coast of Oman, although the cause of the incident was not immediately known.
The latest developments have renewed concerns over potential disruptions to shipping through the Strait of Hormuz, a vital global energy trade route.