Oil rises with escalating geopolitical tensions in Middle East

Oil drilling rigs

Oil prices rose today, June 16, extending gains after a 7% jump on June 13, amid renewed concerns about supply disruptions due to escalating geopolitical tensions in the Middle East.

Brent crude was trading up 0.85% at $74.87 a barrel, at 08:03 am Makkah time. West Texas Intermediate (WTI) crude rose 1.15% to $73.81 a barrel.

This came as Iran and Israel continued to trade attacks, heightening concerns about possible supply disruptions through the Strait of Hormuz, a vital shipping lane through which about a fifth of global oil consumption passes, Reuters reported.

Lorenzo Simonelli, CEO of Baker Hughes, said on the sidelines of the Asia Energy Conference that all of the company's facilities in the Middle East are operating normally.

"What we know is that demand is resilient, and we continue to see strong demand. If there are supply constraints from one region, it will enhance supply opportunities from other regions," he added.