Oil prices climbed as Iran claimed to have executed a fresh wave of retaliatory attacks, while Israel signaled readiness to escalate its involvement in the conflict, further heightening risks to energy supplies in the region. Brent crude futures briefly approached $97 per barrel, marking their highest level since late July, before paring some gains; the benchmark had accumulated an advance of more than 8% over the preceding three sessions. West Texas Intermediate crude rose above $92 per barrel.

According to reports from Iranian sources, the country's military announced on Thursday that it had deployed missiles and drones to strike American military installations in Kuwait and the United Arab Emirates. Kuwait confirmed it had responded to the missile and drone threat, while the UAE has not yet reported any related incidents. Meanwhile, Israel hinted that it was prepared to re-enter the fray if necessary, with Defense Minister Israel Katz stating that an Iranian attack on Israel would imply that Israel's counter-strikes against the Tehran regime would no longer be bound by existing constraints. Katz cautioned, "We will strike all state-level, military, and civilian infrastructure, including energy infrastructure, to push Iran back to the Stone Age."

The renewed escalation between the U.S. and Iran following a relatively calm stretch has triggered a fresh surge in energy prices, intensifying market concerns that the war could become prolonged. As of 12:14 p.m. in London, Brent crude futures for November delivery were up 1.1% at $96.66 per barrel, while WTI crude futures for October delivery rose 1.4% to $92.31 per barrel.