Oil prices jumped nearly 5% on Wednesday, pushing crude above $95 a barrel as investors reacted to rising geopolitical tension and fresh disruption to global trade flows. The move came as U.S. officials played down the likelihood of new diplomacy involving Iran, adding to market concern about energy supplies.
Traders were also watching the conflict closely after an 11th straight night of strikes on Iran, according to the report. With hopes for near-term talks fading, the market added a larger risk premium to oil on fears that the situation could become more disruptive.
The pressure on prices was amplified by problems affecting a second key trade route, raising worries about the movement of oil and other goods. When more than one major supply corridor faces disruption at the same time, markets tend to price in a greater chance of delays, tighter availability, and higher transport costs.
Together, the weaker outlook for diplomacy and the expanding strain on major shipping routes helped send oil sharply higher. The surge highlighted how quickly conflict risk and trade bottlenecks can ripple through global energy markets.
