• Oil prices increased nearly 1% amid US-Iran military tensions.
• Brent crude futures rose to $95.52 a barrel, while WTI increased to $91.02.
• Fears of supply disruptions from the Strait of Hormuz are heightening.

Oil prices extended their rally with a rise of nearly 1% in early trade, driven by escalating tensions after the U.S. launched airstrikes against Iranian targets, raising concerns about potential disruptions in crude supply. Brent crude futures increased by 87 cents, or 0.92%, to $95.52 per barrel, while U.S. West Texas Intermediate climbed 80 cents, or 0.89%, to $91.02 per barrel, marking significant gains from previous sessions, according to Reuters and India Times.

This rise follows a surge of over $4 on Tuesday, the largest daily increase for both Brent and WTI since July. Market analysts underscore concerns over the Strait of Hormuz, through which about one-fifth of global oil consumption is transported. Iran's actions to effectively close this vital waterway to commercial shipping have heightened fears of prolonged supply disruptions following recent attacks on tankers in the region, according to Channel News Asia and Reuters.

The U.S. Central Command noted that the airstrikes were a response to previous attacks by Iran's Islamic Revolutionary Guard Corps (IRGC) aimed at shipping and U.S. personnel in the region. The IRGC announced it had retaliated against a U.S. military base in Jordan with missile strikes, adding to the military escalation in the area, which has already seen a weekend flare-up in hostilities. Jordan intercepted most of the missiles, and U.S. officials reported no casualties from the attacks so far, as highlighted by India Times and Channel News Asia.

The overall market dynamics are further influenced by a drop in U.S. crude inventories, which fell by 2.6 million barrels in the last week reported. This trend of declining stocks has provided additional support to crude oil prices amid rising geopolitical tensions, as confirmed by sources such as Reuters and India Times.