emirates7 - Oil prices settled higher at the close of trading on Wednesday. Brent crude futures rose by $1.81, or 1.89%, to reach $97.81 a barrel. Meanwhile, US crude futures increased by $2.26 at settlement, or 2.41%, to close at $96.02 a barrel.

The rise in global energy benchmarks is reportedly driven by primary factors, including an escalation of geopolitical risk in the Middle East and the sudden halt in diplomatic negotiations between Washington and Tehran.

Another key driver is a pre-existing environment of tight global crude inventories, which left the market highly sensitive to supply threats and accelerated the upward price momentum as buyers rushed to secure volumes.