Global crude oil prices continued to climb on Wednesday as growing tensions in the Middle East increased concerns about possible disruptions to oil supplies.

Brent crude, the international benchmark, moved close to the $100-per-barrel mark, while U.S. West Texas Intermediate also recorded significant gains. Reuters reported that Brent reached about $99.49 per barrel during Wednesday’s trading.

The latest movement came as fighting and military tensions in the region intensified. Recent attacks involving Iran-backed Houthi forces, Saudi Arabia and U.S. forces have increased concerns among traders about the security of important energy infrastructure and shipping routes.

The Strait of Hormuz is receiving particular attention because it is a major route for global oil shipments. Reuters reported that shipping activity through the strategic waterway remained below its recent average, adding to concerns about potential supply disruptions.

Rising crude prices could have wider consequences for the global economy because expensive oil can increase transportation and production costs and add pressure to inflation.

Oil-producing countries, including Nigeria, are also watching the situation closely as changes in international crude prices can affect government revenue, foreign exchange earnings and the wider economy.

Markets are expected to remain sensitive to developments in the Middle East as investors assess whether the conflict will continue to disrupt energy supplies.

SOURCE: Clinton/Reuters