SINGAPORE: Oil prices rose on Wednesday, extending gains from the previous session, as hostilities in the Middle East erupted anew with Iran firing missiles at Kuwait and Bahrain, while diplomatic talks between Iran and the US showed little progress.
Brent futures gained 81 cents, or 0.8 percent, to $96.81 a barrel at 06:30 a.m. Saudi time, while US West Texas Intermediate crude climbed 91 cents, or 1 percent, to $94.67.
Both benchmarks settled at a one-week high in the previous session.
Iran launched ballistic missiles toward regional neighbors Kuwait and Bahrain but failed to hit targets, the US military said, adding that American forces conducted strikes on Iran’s Qeshm Island in response to the attempted attacks.
“The stalling in the US-Iran negotiations and IEA warnings of critical global low stock levels are adding upward layers in risk premium in benchmark prices,” said Emril Jamil, a senior analyst for oil at LSEG.
