Mumbai: Global crude oil prices traded higher on Wednesday after fresh tensions emerged between the United States and Iran.
The rise came after the US military launched strikes on Iranian military targets near the Strait of Hormuz, one of the world's most important oil shipping routes. Investors fear that any disruption in the region could affect global energy supplies.
Brent Crude Crosses USD 93 Mark
International benchmark Brent crude gained about 1 percent to trade at USD 93.26 per barrel.
US West Texas Intermediate (WTI) crude also moved higher by nearly 1 percent and was trading around USD 90 per barrel.
The latest increase reflects growing concerns among traders about the impact of geopolitical tensions on oil exports from the Middle East.
US Military Action Raises Concerns
According to the US Central Command, the strikes targeted Iranian air defence, surveillance radar and ground control facilities near the Strait of Hormuz.
The operation was reportedly carried out after a US Army Apache helicopter was brought down in the region.
However, Iran denied any involvement in the incident and said the helicopter crash was accidental.
The development has raised fears of a wider conflict at a time when markets were expecting tensions in West Asia to ease.
Falling US Oil Inventories Support Prices
Oil prices also received support from reports that US crude oil inventories declined for the eighth consecutive week.
Lower inventories generally indicate stronger demand or tighter supplies, which often supports higher oil prices.
Meanwhile, Iran reportedly warned that hostilities could increase again if Israel continued military action against Hezbollah in Lebanon.
Global Markets Under Pressure
The geopolitical uncertainty weighed on investor sentiment across global markets.
Asian stock markets traded lower, with Japan's Nikkei and Hong Kong's Hang Seng declining more than 1 percent. South Korea's KOSPI fell nearly 4 percent.
US markets also ended lower on Tuesday, with the Nasdaq Composite losing 0.97 percent and the S&P 500 declining 0.26 percent.
Despite the global weakness, Indian benchmark indices traded higher in early Wednesday trade, gaining up to 0.5 percent as investors remained focused on domestic market strength.
