Middle East Tensions and Crude Stockpiles Send Oil Futures Soaring

Renewed fighting in the Middle East and a larger-than-expected drop in U.S. crude stockpiles sent oil futures skyrocketing by over 6%.

The hostilities between Iran and the U.S. led to escalating tensions, with Iran launching missile attacks on a U.S. base and targeting tankers in the Strait of Hormuz.

This development revived fears of a wider regional conflict that could severely disrupt oil supplies, driving Brent crude futures above $90 a barrel and West Texas Intermediate (WTI) climbing past $84 a barrel.

A report from the American Petroleum Institute (API) also highlighted continued tightness in the domestic market, with commercial crude oil inventories falling by 3.3 million barrels in the week ending July 24.