Oil prices climbed more than 3% as a fresh round of fighting across the Middle East undermined diplomatic efforts to end a five-month-old conflict that has roiled energy markets and disrupted flows through two of the world's most critical oil-shipping routes. The escalation threatens to widen a regional war that has already strained global supply chains and heightened volatility in energy markets.

The front-month Brent crude contract rose 3.8% to $87.32 a barrel in mid-morning European trading on Wednesday, while WTI futures were up 3.6% to $82.06 a barrel following a sharp selloff earlier this week. The gains reversed losses from earlier sessions when prices had fallen on expectations of a ceasefire agreement.

Analysts warned that continued hostilities could further constrain supply from the region, which accounts for nearly a third of global oil production. Shipping disruptions in the Red Sea and Persian Gulf have already forced tankers to take longer routes, adding to transportation costs and delivery delays. Diplomatic efforts led by the United States and regional partners have so far failed to achieve a lasting truce, leaving markets vulnerable to further price spikes.