Oil nears $100 as fresh Middle East strikes raise supply risks

Brent crude futures rise 1.4% to $99.33 a barrel

Oil prices rose for the fourth straight session, gaining more than $1 ​in early trade on Wednesday after renewed attacks across ‌the Middle East heightened worries about supply disruptions.

Brent crude futures rose 1.4%, to $99.33 a barrel, while US West Texas Intermediate crude was at $94.34 ​a barrel, up 1.4%.

Brent crude prices have jumped by ​a quarter since early August as hopes for a ⁠permanent resolution to the six-month-old war faded and as fighting flared ​again, with prices fast approaching the key $100-a-barrel mark.

The Middle East war intensified ​on Tuesday with Iranian-backed Houthis in Yemen launching strikes on several Saudi cities, further embroiling a US ally in the conflict.

The US forces hit multiple ​Iranian oil tankers and Iran targeted a US base in ​Jordan.

Read: Oil sector rejects new price formula

"Recent developments only reinforce the view that we are still some way from ‌a ⁠restart in (peace) talks. In the meantime, the market is likely to continue to price in a sizeable risk premium," ING analysts said in a note.

The latest attacks threaten to deepen disruptions to Middle ​East oil supplies, ​already strained ⁠by strikes on regional energy infrastructure and key shipping lanes.

While Saudi Arabia has diverted some exports away ​from the Strait of Hormuz, any sustained attacks ​on ⁠the kingdom could complicate efforts to keep crude flowing to global markets, analysts said.

"Iran's attacks on Saudi energy facilities and the subsequent destruction ⁠of ​five Iranian tankers raised concerns about another ​prolonged disruption to oil supplies," OCBC analysts said in a note.