Oil prices rose more than 1% on Wednesday as tensions continue to rise in the Middle East after Iran fired missiles towards Kuwait and Bahrain. At the same time, peace efforts between Tehran and Washington achieved no success and the disruption in the Strait of Hormuz continued for the 96th day.Brent crude futures rose $1.05, or 1.09%, to $97.05 a barrel, while US West Texas Intermediate (WTI) crude rose $1.01, or 1.08%, to $94.77.This gain came as Iran fired ballistic missiles toward Kuwait and Bahrain. According to the US military, the missiles failed to hit their intended targets. Washington said its forces later launched strikes on Iran’s Qeshm island in response to the attempted attack.Markets continued to monitor developments related to the conflict, with Iran reviewing a proposed deal with the United States aimed at ending hostilities. Earlier on Tuesday, Iranian media reported that Tehran had not been in contact with Washington for several days, although US President Donald Trump said talks had continued without interruption.On the supply front, US crude inventories declined for the seventh consecutive week, according to market sources citing American Petroleum Institute data released on Tuesday. Sources said that during the week ending May 29, crude oil reserves fell by 68 lakh barrels. Amid rising tensions, Iran claimed it had targeted US military facilities in Kuwait in response to US aggression in the Persian Gulf.“Following US hostile actions in the Persian Gulf, the Strait of Hormuz and Qeshm Island, US targets in Kuwait were attacked,” Iran’s state broadcaster IRIB said.However, Kuwait said its air defense systems intercepted the incoming missiles and drones after explosions were heard in different parts of the country. The Kuwaiti Army General Staff said the sounds were linked to operations conducted by air defense units in response to hostile air threats.Meanwhile, US Central Command said Iran launched several ballistic missiles toward neighboring countries, but said “all failed to hit their intended targets.”According to CENTCOM, two missiles fired toward Kuwait either failed or broke up mid-flight, while three missiles directed toward Bahrain were intercepted by American and Bahraini air defense systems.Meanwhile, the conflict has now entered its fourth month and both sides have failed to reach any conclusion despite repeated peace efforts. The Middle East crisis began on February 28, when the US and Israel launched joint strikes on Iran. After the attack, Tehran tightened its grip on the vital Strait of Hormuz, a route that supplies 20% of the world’s energy. As a result, pipeline blockages strained fuel shipments, causing crude oil prices to rise above the $125 per barrel mark from $70 before the conflict began, disrupting economies. However, prices have fallen below the $100 per barrel level after signs of diplomatic efforts between the two sides.
