Oil Prices Rise as Iran Attacks U.S. Bases in Gulf

Oil prices rose as Iran reported new strikes against US military positions across the Middle East, while bond yields eased and stock markets steadied after recent volatility, Agence France-Presse (AFP) reported.

Oil prices rise as escalating US-Iran hostilities raise concerns about disruptions to global energy supplies.

Crude futures briefly retreated after President Donald Trump suggested US attacks against Iran could be short-lived. However, as Iran's retaliation continued and the possibility of further US strikes remained, oil prices resumed their upward trend.

Iran said Thursday that it had attacked US military bases in Kuwait and the United Arab Emirates.

The strikes came after Trump threatened further attacks in a fresh escalation of the conflict.

International benchmark Brent crude traded above $97 a barrel Thursday morning, while US West Texas Intermediate crude rose above $92.

The prices represented their highest levels in weeks as concerns grew over the potential impact of the conflict on regional oil supplies.

Before the latest escalation in hostilities, Brent had traded for months around $65 a barrel. The conflict has since pushed crude sharply higher as traders assess the risks to production, exports and shipping through the Strait of Hormuz.

US gasoline prices have also remained elevated. AAA's national average for regular gasoline was about $4.14 a gallon on Sept. 3 and about $4.15 on Sept. 5, with prices nearly $1 higher than a year earlier.

The continuing attacks have added to concerns that prolonged disruption in the Middle East could keep crude and fuel prices elevated.