Middle East Tensions Fuel Oil Price Surge

Oil prices surged by around $3 a barrel on Wednesday following a series of events in the Middle East. The U.S. and Saudi strikes on Iran-backed targets in Iraq, along with the interception of Iranian ballistic missiles aimed at U.S. forces, contributed to the price jump.

Brent crude futures rose $3.30, or 3.9%, to $87.39 a barrel at 0300 GMT, while U.S. West Texas Intermediate crude gained $3.05, or 3.8%, to $82.31 a barrel.

According to ING analysts, the renewed momentum comes after the U.S. announced that it had repelled a surprise attack on American troops, dampening expectations of a swift de-escalation of tensions in the Persian Gulf.