Oil prices experienced a notable jump on Wednesday, climbing roughly 2% to hit one-week highs as renewed hostilities between the U.S. and Iran sparked fresh anxiety over global energy supplies. Brent crude reached $92.04 a barrel, while West Texas Intermediate followed closely at $87.60, both tracking toward their strongest closes in weeks. The market remains on edge following a series of direct military exchanges, including missile strikes on air bases and reports of tankers coming under fire near the Strait of Hormuz. Analysts warn that the ongoing instability could lead to significant and prolonged interruptions in the transit of crude through this critical waterway.

Beyond the immediate geopolitical friction, the energy sector is also grappling with tightening supply chains that have pushed diesel prices to multi-month highs. Refinery disruptions in both the Middle East and Russia—the latter exacerbated by continued aerial strikes in Ukraine—have strained global inventories and boosted refining profit margins to record levels. As traders wait for the latest U.S. storage data, which is expected to show the first drawdown in crude stocks in over a month, the consensus among experts is that prices will likely remain elevated above $80 per barrel as the industry struggles to navigate these compounded supply risks.