Middle East Tensions Send Oil Prices Soaring 4% Amid Escalating Conflict

Oil prices surged on Wednesday by more than 4% to $87.81 per barrel as tensions escalated in the Middle East following US and Saudi strikes in Iraq and an intercepted Iranian missile attack on US forces.

The Brent futures price rose $3.72, or 4.4%, while US West Texas Intermediate (WTI) crude gained $3.43, or 4.3%, to $82.69 per barrel.

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

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