Middle East Escalation Sends Oil Prices Soaring
Oil prices surged on Wednesday as airstrikes escalated in the Middle East, sparking concerns about dwindling supply. The US and Saudi Arabia launched strikes on Iran-backed groups in Iraq, blaming them for drone attacks on Saudi oil facilities.
The US government data showed that domestic crude inventories fell to a multi-year low, adding to worries about supply disruptions. As a result, Brent futures settled at $90.74 a barrel, up 7.91%, while US West Texas Intermediate crude rose to $84.46 a barrel, an increase of 6.56%.
The strikes on Iran-backed groups came after the US military said it had averted a surprise Iranian attack on US troops in the region. Iran claimed that it had fired on ships in the Strait of Hormuz and at US bases in Jordan, while explosions hit a natural gas loading port in Egypt and a US-owned floating storage tanker was hit by a drone.