Middle East Tensions Send Oil Prices Skyrocketing Above $90 per Barrel

Oil prices surged on July 29 as renewed military action in the Middle East and threats to shipping through the Strait of Hormuz heightened concerns over global oil supplies.

Brent crude futures rose $6.16, or 7.33 percent, to $90.25 a barrel by late morning in New York, while U.S. West Texas Intermediate crude gained $5.40, or 6.81 percent, to $84.65.

UBS analyst Giovanni Staunovo attributed the price increase to renewed military strikes in the Middle East and Iranian officials' reiteration that they want to control shipping activity through the Strait of Hormuz amid depressed oil flows.

The U.S. and Saudi Arabia launched strikes on Iran-backed groups in Iraq, blaming them for drone attacks on Saudi oil facilities.