Middle East Tensions Fuel 7% Oil Price Surge

Oil prices surged 7% on Wednesday as airstrikes in the Middle East resumed, adding to concerns about dwindling supply. Crude inventories fell to a multi-year low of 404.5 million barrels last week, according to U.S. government data.

The price increase was driven by renewed military strikes in the region and Iranian officials' reiteration that they want to control shipping activity through the Strait of Hormuz amid depressed oil flows through the strait, said UBS analyst Giovanni Staunovo.

The U.S. and Saudi Arabia launched strikes on Iran-backed groups in Iraq on Wednesday, blaming them for drone attacks on Saudi oil facilities. Prices surged even higher after President Donald Trump promised further strikes against Iran.