Iran Missile Attack Spooks Oil Markets, Prices Surge 5 Percent

Oil prices surged on Wednesday after Iran launched missiles at American troops and the US and Saudi Arabia carried out joint strikes against Iraqi militias. The move dimmed hopes for a negotiated peace in the region, causing Brent crude to climb as much as 5 percent.

The price increase follows a 16 percent decline over the prior three sessions, which was the steepest three-day drop for crude since 2020. Despite paring some of its gains, Brent remained trading 4.27 percent higher at $87.68 a barrel by 7:52 AM UAE time.

West Texas Intermediate, the US oil benchmark, rose 4.18 percent to $82.57 a barrel. The sharp increase comes after Iran's Islamic Revolutionary Guard Corps fired ballistic missiles at a US airbase and a US Central Command facility in Jordan, blaming what it termed aggressive actions by the American military against Iran.

The US and Saudi forces conducted precision strikes on Iran-aligned groups in Iraq earlier, targeting terrorist logistics and weapons sites across eastern Iraq. The joint operation was described as a strong response to more than 30 drone strikes by those groups on US and Saudi energy infrastructure over the preceding 72 hours.