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LONDON — World oil prices soared Wednesday, with the benchmark international contract Brent North Sea crude surpassing $95 for the first time in nearly six weeks as the United States and Iran carried out more strikes.
Crude futures went on to give up some of the gains but still banked gains of about 3.5 per cent.
Fresh US strikes triggered air defences in Tehran after President Donald Trump warned he was "not finished" with a war with Iran that has already cost his nation $37.5 billion.
After the foes' fighting over the strategic Strait of Hormuz led to the collapse of a preliminary deal, the Middle East war has expanded to include the region's other key chokepoint for global oil supplies.
Still, top US diplomat Marco Rubio reiterated Washington's statement that it is willing to use diplomacy to find an agreement with Tehran.
Oil futures have risen strongly in recent weeks, after having fallen back to pre-war levels on hopes that a deal to end the conflict would hold.
The escalation in violence has made a return $100 crude a realistic prospect should tensions not ease.
While stock market traders kept a close watch on the Mideast war developments, focus was also firmly on the technology sector, as has been the case for several weeks.
"European stock indices are brushing off the rise [oil prices]... after a stunning rally for US chip stocks on Tuesday," noted Kathleen Brooks, research director at traders XTB.
