Oil rises in early Asian trade amid growing concerns over supply disruptions in the Middle East. A Kuwaiti oil tanker was attacked in the Strait of Hormuz northeast of Oman by an unknown projectile, ANZ Research analysts say. This follows strikes on vessels owned by Dynacom Tankers Management, leaving the strait deserted with no ships observed transiting Tuesday. Prospect of a U.S.-Iran ceasefire has faded.

Front-month WTI crude oil futures are 0.4% higher at $84.68 per barrel. The U.S. dollar edged higher as the U.S. and Iran exchanged strikes for a 10th consecutive day, says Samara Hammoud, currency strategist at CBA.

CBA expects strikes to continue for the next two months, bringing renewed closure of the Strait of Hormuz and pushing Brent oil prices toward $100 per barrel. Continued conflict should support the USD due to its safe-haven status and positive correlation with oil prices.