Oil prices surged Wednesday as hostilities escalated in the Persian Gulf with Iranian drones striking Kuwait's main airport and the United States exchanging strikes with Iran. Energy markets remain on edge with the conflict now in its third month, despite both nations claiming a cease-fire holds while negotiations continue.

Brent crude climbed over 2% to approximately $98 per barrel, while West Texas Intermediate gained nearly 3% to around $96. Investors focus on continued disruptions in the Strait of Hormuz, the critical waterway handling one-fifth of global oil supplies, where shipping constraints persist despite recent diplomatic efforts.

Gas prices dipped to a national average of $4.26 per gallon, yet remain 43% higher than before the conflict began. Diesel prices fell to $5.41 but increased 44% since hostilities started. Stock markets showed mixed performance worldwide, reflecting ongoing uncertainty about the geopolitical tensions affecting global energy markets.