Oil futures climbed in Asian trading on Wednesday as Middle East hostilities intensified, raising concerns about potential supply disruptions. West Texas Intermediate and Brent crude both gained over 1% as investors priced in geopolitical risk to global energy flows.

U.S. Central Command confirmed American forces shot down Iranian missiles and drones while conducting strikes on Qeshm Island. Iranian missiles targeting Kuwait failed or disintegrated mid-flight, while three projectiles aimed at Bahrain were intercepted by U.S. and Bahraini defenses. The exchange threatens fragile U.S.-Iran negotiations.

The conflict's escalation risks disrupting the Strait of Hormuz, through which roughly one-fifth of global oil shipments transit. ANZ Research warned that Iran's proxy groups could target Red Sea oil supplies, potentially affecting the approximately 5 million barrels per day Saudi Arabia routes through that corridor.

WTI futures rose 1.2% to $94.86 per barrel and Brent gained 1.0% to $96.98, ICE data showed. With peace talks faltering and supply routes jeopardized, energy markets face sustained upward pressure until diplomatic breakthroughs emerge.