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Oil prices surged after Iran fired ballistic missiles against Israel sparking fears of a wider conflict in the Middle East that could disrupt oil supplies.
Brent crude – a key benchmark for oil prices internationally – rose more than 1% to $74.40 a barrel.
During trading on Tuesday, it jumped more than 5%.
Iran is the seventh largest oil producer in the world, according to the US Energy Information Administration, and the third-largest member of the Opec oil producers’ cartel.
Traders also fear any military escalation in the region could affect shipping through the Strait of Hormuz.
The shipping route – which lies between Oman and Iran – is key to the global oil trade with 20% of world’s supplies sailing through it.
Other Opec members Saudi Arabia, the UAE, Kuwait and Iraq also send most of the oil they export through the Strait.
Read more: Netanyahu vows response as Iran fires missile barrage
Meanwhile, Asia stocks sank on Wednesday, catching up with the sell-off on Wall Street after Iran’s ballistic missile strike on Israel provoked fears of a wider regional conflict.
Investors flocked to safer assets, pushing U.S. Treasury bond yields down in Asian time, while gold hovered near an all-time high.
The safe-haven dollar traded close to its strongest in three weeks versus the euro.
Macroeconomics also buoyed the dollar, with a resilient U.S. job market arguing for a smaller Federal Reserve interest-rate cut in November, and euro zone inflation trends backing a European Central Bank easing this month
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