Oil prices climbed more than 2 percent as fears of supply disruptions intensified amid the ongoing war between Israel and Iran. Brent crude rose to just under 103 dollars a barrel, while West Texas Intermediate crude approached 96 dollars, reversing losses from the previous session. The Strait of Hormuz, a key passage for roughly one fifth of global oil and liquefied natural gas trade, remains largely shut, heightening concerns about shortages and rising energy costs.

Tensions escalated after several allies of the United States rejected President Donald Trump's request to send warships to escort commercial vessels through the strait. Analysts warned that even a single attack on a tanker could further destabilize markets. Additional support for prices came after a drone strike sparked a fire in the Fujairah Oil Industry Zone, though no injuries were reported.

The disruption has forced the United Arab Emirates, the third largest producer in the Organization of the Petroleum Exporting Countries, to cut output by more than half. Middle Eastern crude benchmarks have surged to record highs, while the International Energy Agency signaled that member nations could release more oil from strategic reserves to contain energy costs. Israel has indicated it is preparing for several more weeks of military operations, adding to uncertainty in global markets.