Oil prices climbed in Asian trade Wednesday as escalating Middle East conflict raised supply-disruption fears. The U.S. destroyed five Iranian oil tankers on Tuesday after Iran attempted to strike U.S. warships. Since Friday, Iran has fired ballistic missiles at a U.S. aircraft carrier, a destroyer, and at least one Marine ship.

Iran-backed Houthi militants in Yemen also targeted Saudi Arabia's southern energy facilities, hitting gas and oil storage sites in Abha, Najran, and Jazan, leaving the major Jazan refinery aflame and offline. ANZ Research noted the escalation has weighed on Persian Gulf oil flows. OPEC's crude production fell by 900,000 barrels per day in August to average 19.91 million barrels per day.

Brent crude rose 1.4% to $99.31 per barrel, while West Texas Intermediate advanced 1.6% to $94.51. The yen strengthened against the dollar amid expectations of faster Bank of Japan rate hikes, with September hike odds jumping from 65% to 98%.