Middle East Conflict Sends Oil Prices Soaring Nearly 7%
Oil prices surged nearly 7% on Wednesday as massive airstrikes resumed in the Middle East. The conflict escalated when US and Saudi Arabia struck Iranian proxy forces in Iraq, accusing them of drone attacks on Saudi oil facilities.
Brent crude futures rose $5.70 to $89.79 a barrel, while US West Texas Intermediate (WTI) crude increased by $4.94 to $84.20 a barrel.
UBS analyst Giovanni Staunovo attributed the price increase to the resumption of military strikes and Iranian officials' statements about controlling shipping through the Strait of Hormuz amid declining oil flows.
The situation was further complicated when Iran rejected Oman's proposal for joint regional management of the Strait of Hormuz, dashing hopes for a resolution to the standoff that has paralyzed Gulf trade for months.