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According to reporting from The New York Times, oil prices rose on Wednesday as escalating military actions between the United States and Iran continued to unsettle energy markets, raising fresh concerns over potential disruptions to global oil supplies.

The latest flare-up follows a period of relative calm after earlier cease-fire efforts, with both sides exchanging strikes for multiple consecutive nights. Investors reacted to signals from U.S. leadership downplaying immediate prospects for renewed peace negotiations, even as shipping traffic through the critical Strait of Hormuz showed signs of strain.

Brent crude, the international benchmark, climbed notably in trading, reaching levels that reflected heightened supply fears in the Persian Gulf region. West Texas Intermediate crude, the U.S. benchmark, also advanced amid the volatility. The movements come against the backdrop of ongoing U.S. military operations targeting Iranian sites and Iranian responses affecting regional facilities.

“Oil has extended [gains] as President Trump downplays the prospects of immediate talks with Iran with both sides exchanging strikes for an 11th straight night,” one market analysis noted, highlighting the persistent uncertainty.

Commercial traffic through the Strait of Hormuz, a vital artery carrying roughly one-fifth of global oil supplies, has dropped to its lowest level in recent weeks. This constriction, combined with retaliatory actions, has amplified worries about longer-term impacts on energy flows from the Gulf. Additional factors, including attacks linked to Houthi-backed rebels in the Red Sea, have compounded the pressure on shipping routes.

U.S. Defense Secretary Pete Hegseth reportedly informed lawmakers that the conflict has already cost the United States more than $37.5 billion, underscoring the broader stakes. Despite the tensions, some analysts suggested that full-scale re-escalation to earlier peaks may not be inevitable, though short-term volatility remains a significant risk.

Markets have shown resilience through earlier phases of the conflict, with prices fluctuating from wartime highs above $118 per barrel down toward prewar levels around $72 before the recent uptick. However, depleted global stockpiles and the need to replenish reserves could leave the system vulnerable to further spikes if disruptions persist.

Gasoline prices in the United States have also reflected these shifts, remaining elevated compared to pre-conflict averages and contributing to inflationary pressures as households and businesses absorb higher energy costs.