Brent crude rose 1.4% in early trading to around $99.80 a barrel, moving closer to the key $100 level. US West Texas Intermediate (WTI) also gained 1.4% to $94.75, while UAE Murban crude traded around $110.20 a barrel.

The latest increase reflects growing concerns that the worsening regional conflict could disrupt crude production, exports and shipping routes. Recent attacks on energy infrastructure and key maritime routes have already added pressure to the global oil market.

Middle East conflict raises supply concerns

Reports said Brent has gained about 25% since the beginning of August, putting the benchmark close to a level that could have a wider impact on fuel and energy markets.

The latest escalation has involved Iran-backed Houthi attacks on Saudi cities, US strikes against Iranian oil tankers and reported Iranian attacks on a US military base in Jordan.

The developments have increased concerns over oil flows through important routes, including the Strait of Hormuz and Bab el-Mandeb. Shipping activity through the Strait of Hormuz has also remained below normal levels, adding to market uncertainty.

Oil market risk premium grows

ING analysts said the latest developments reinforce expectations that a return to peace talks could take time. The bank said the oil market is likely to maintain a significant risk premium while tensions remain high.

Analysts warn that prolonged attacks on Saudi energy facilities and shipping routes could make it increasingly difficult to maintain steady global crude supplies.