Oil prices steadied on Wednesday, recovering early losses to register moderate gains after the previous session's 4% advance as markets weighed up the chance of supply disruptions from the Iran-Israel conflict and potential direct U.

Financial markets have been rattled by fears of crude supply disruptions, especially after reports that an Israeli strike hit an oil storage facility in Tehran.

Iran has significantly increased its daily oil exports following an Israeli attack, attempting to ship out as much crude as possible amidst escalating regional tensions.