Oil prices rebounded on Wednesday, with crude rising 5% as investors assessed developments in the escalating conflict between the United States and Iran.

Brent futures were trading around $92 just before noon GMT, up 5%, while US West Texas Intermediate (WTI) crude rose similarly to $88 per barrel.

Investors remain cautious as the duration of the military escalation with Iran is uncertain. At the same time, major Middle Eastern producers have collectively cut output by more than 6 million barrels per day, with the Straits of Hormuz effectively closed.

Prices briefly fell after the International Energy Agency reportedly proposed the largest coordinated release of strategic oil reserves in its history. However, the move did little to suppress the rally. G7 countries have expressed support in principle, though no concrete measures have yet been announced.

Attention now shifts to the report expected later today from OPEC.