Oil prices extended their rally on Wednesday as heightened sanctions risk increased concerns about supply disruptions, ING analysts said. The firm’s commodity strategy team said traders are pricing a higher risk premium as they assess the possibility of new or expanded measures targeting major oil-producing nations, including Russia and Iran. With spare capacity already limited, the market is particularly sensitive to the potential removal of barrels from global supply. Higher oil prices could raise fuel and transportation-related costs, add to inflationary pressure and complicate central-bank policy, while supporting energy-sector profit margins. ING said the situation remains fluid, with the eventual impact depending on the details of any measures, possible waivers, compliance by other nations and responses from major producers. Investors will also watch for demand weakness that could offset supply concerns. The rally highlights oil’s role as a gauge of geopolitical stability and is likely to keep the market volatile until there is greater clarity on policy direction.