Middle East Tensions Fuel Oil Price Surge as Shipping Attacks Escalate
Oil prices continued to rise on Wednesday as concerns over supply disruptions in the Middle East deepened, driven by uncertainty over a possible US-Iran peace deal and fresh attacks on commercial shipping.
Brent crude futures gained $0.75, or 0.84%, to $89.66 a barrel, while US West Texas Intermediate crude rose $0.72, or 0.87%, to $83.92 a barrel.
The latest gains came after oil prices surged around 5% on Monday when hopes for a diplomatic breakthrough between Washington and Tehran weakened. US President Donald Trump added to the uncertainty by saying Iran should compensate victims of wars, attacks, and protests as part of any agreement.
Priyanka Sachdeva, head of market insights at Phillip Nova in Singapore, said investors were reacting to a market caught between the prospects of a peace deal and the risk of a wider conflict. She added that frequent changes in the political narrative were creating opportunities for short-term traders despite the heightened volatility.