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Oil prices are once again moving towards the $100-a-barrel mark as fresh fighting involving the US, Iran and their allies raises concerns about the security of crude supplies from West Asia.

The international benchmark Brent crude rose 1.4% to $99.33 a barrel by 0212 GMT on Wednesday, while US West Texas Intermediate (WTI) also gained 1.4% to $94.34, Reuters reported. Brent was at $99.337 at 9:16 AM IST, according to the Trading Economics real-time tracker.

The latest rise comes as attacks on oil infrastructure and shipping have intensified, while uncertainty surrounding the Strait of Hormuz continues to weigh on the market.

Strait Of Hormuz At The Centre Of Supply Concerns

One of the biggest concerns for oil markets is the continued uncertainty around the Strait of Hormuz, a key route for oil shipments.

The waterway has been severely affected since the conflict began in February. Iranian Foreign Ministry spokesman Esmail Baghaei said earlier this week that an arrangement with Oman to establish a safe route through the strait could be reached within days.

However, shipping activity remains below recent levels. Six commodity vessels crossed the Strait of Hormuz on Tuesday, according to preliminary data from Kpler. This was down from nine the previous day and below the 10-day average of about 12 vessels.

Iranian state media also reported that the country had captured a US unmanned submarine near the entrance to the strait. The vessel, identified as the 19-foot Dive-LD, was built by California-based defence company Anduril and can be used for missions including seabed mapping, mine countermeasures and underwater infrastructure inspections, Reuters reported.

Fresh Attacks Add To Oil Supply Risk

The latest jump in crude prices followed a series of military developments across the region.

Iranian-backed Houthis in Yemen attacked four cities in southern Saudi Arabia, leaving 73 people injured, according to the report. Oil installations in the affected area were also set on fire.

The US military subsequently said it had destroyed five Iranian crude vessels. US Central Command said the strikes were in response to attacks by Iran's Islamic Revolutionary Guard Corps (IRGC) on a US Navy warship using ballistic missiles.

US Secretary of State Marco Rubio warned that further Iranian attacks on US naval vessels would result in the loss of additional Iranian tankers.

Iran then launched ballistic missiles at a US base near Al Azraq in Jordan, according to an IRGC statement carried by Iranian state media. Iran said the attack caused significant damage, while Jordan said its air defences intercepted 18 of the 20 missiles and reported no casualties.

Why Traders Are Pricing In A Bigger Risk Premium

The escalation has raised concerns that the disruption to oil supplies could last longer than initially expected.

ING analysts said recent developments had made a resumption of US-Iran peace talks appear increasingly unlikely. As a result, the oil market is expected to continue carrying a sizeable risk premium, Reuters reported.

OCBC analysts also highlighted the attacks on Saudi energy facilities and the destruction of five Iranian tankers as factors that could point towards a prolonged interruption to supplies.

The concern is not limited to the immediate movement in crude prices. A longer disruption to exports could push prices substantially higher.

US Tightens Pressure On Iran

Alongside the military escalation, Washington has continued to increase economic pressure on Tehran.

The US announced 36 Iran-related sanctions on Tuesday, targeting the country's aviation sector and related companies as part of President Donald Trump's "Operation Economic Outcast".

The White House has described the campaign as an effort to cut off Iran's remaining economic lifelines.

The US Treasury Department said the latest measures targeted Iran's aviation industry, including Mahan Air, which is already subject to US and EU sanctions. The Treasury's Office of Foreign Assets Control also suspended three Iran-related aviation authorisations that had allowed non-US airlines to operate US-origin or US-controlled commercial aircraft into Iran.

US officials said the measures were intended to further restrict the financial channels available to Tehran.

What Is Driving The Risk Of $100 Oil?

The approach towards $100 a barrel is therefore being driven by several developments at the same time.

The market is dealing with renewed US-Iran military action, attacks involving Saudi energy infrastructure, strikes on oil tankers and continued uncertainty over shipping through the Strait of Hormuz.

The possibility that these disruptions could continue for months is adding another layer of concern. If exports fail to recover while attacks on shipping persist, the supply risk could become more pronounced.