Oil prices continued to rise on Wednesday as tensions between the United States and Iran increased, raising concerns about global energy supplies.

Brent crude oil rose by 99 cents, or 1.2%, to $85.72 per barrel, while US West Texas Intermediate (WTI) crude gained 64 cents, or 0.8%, to $79.98 per barrel.

Oil prices had already reached a one-month high on Tuesday after attacks disrupted shipping in the Strait of Hormuz, a key route through which about 20% of the world's oil and liquefied natural gas normally passes.

Market analyst Priyanka Sachdeva said that although oil supplies are currently stable, any further fighting in the Strait of Hormuz or new sanctions on Iran could push prices even higher.

The US military said it carried out another round of strikes on Wednesday, targeting Iranian military sites it claimed were being used to threaten commercial shipping in the Strait of Hormuz.

Iran said it had once again closed the Strait of Hormuz after fighting with the US resumed last week, despite a ceasefire agreement reached in June.

President Donald Trump said the US could also target Iran’s energy facilities if the conflict continues.

Iran’s army claimed it launched drone attacks on a US military base in Jordan, while Iran’s Revolutionary Guard said it also targeted US-linked military facilities in Bahrain and Kuwait. These claims could not be independently verified.

The latest escalation has raised doubts about whether last month’s agreement between the US and Iran can still lead to lasting peace.

Analysts warned that if the conflict spreads and damages energy infrastructure in the Gulf, oil prices could move close to $100 per barrel. However, if diplomacy succeeds and the Strait of Hormuz reopens, prices may fall back to around $75 to $80 per barrel.