Oil rose on rising concerns over supply disruptions in the Middle East. Brent crude futures advanced 1.2% to $85.40 per barrel, while U.S. West Texas Intermediate climbed 1.1% to $81.20. The gains reflect heightened geopolitical tensions following attacks on commercial vessels in the Red Sea and ongoing instability in the Persian Gulf. Market participants fear that any escalation could interrupt crude flows from key producers such as Saudi Arabia, Iraq, and the United Arab Emirates. OPEC+ output reductions, extended through the first quarter, further tighten available supply.

Analysts note that the risk premium embedded in prices may increase if disruptions materialize. Investors are also watching upcoming U.S. inventory data for demand signals. The International Energy Agency recently revised its 2024 demand growth forecast upward, adding support.

Trading volumes remained elevated as hedge funds adjusted positions. The next OPEC+ meeting in March will be critical for price direction.