Oil prices jump as Iran attacks US assets in Jordan and Gulf

Oil prices extended their rally for a fourth consecutive session on Wednesday, climbing more than $1 in early trade after Iran launched fresh missile attacks on US military assets in the Gulf and Jordan. The escalation signals that the six-month-old conflict between Washington and Tehran continues to spread across the region.

Brent crude futures gained $1.57, or 1.6%, to $99.49 a barrel, while US West Texas Intermediate crude rose $1.60, or 1.72%, to $94.63 a barrel. Prices have surged by about a quarter since early August as hopes for a permanent resolution to the war have faded and fighting has flared again.

Iran's Revolutionary Guards said they had attacked two US destroyers and a US base in Jordan's Al Azraq with ballistic missiles, in retaliation for US attacks on Iranian oil tankers. Jordan's military reported that its air-defence systems intercepted 18 of the 20 incoming missiles, with the remaining two landing in unpopulated areas and causing no casualties.

In a parallel development, US Secretary of State Marco Rubio warned Iran that Washington would continue to strike Iranian oil tankers in response to attempted attacks on US warships. "Iran continues to try to hit US naval ships, and for every time they do that or try to do that, they're going to lose tankers," Rubio told reporters during a visit to Colombia.

The US Central Command said on Tuesday that its forces had destroyed five Iranian crude oil carriers on September 8, following attempted missile attacks on a US Navy warship over the preceding two days. The latest exchange underscores the volatile state of the region and its implications for global energy markets.