Middle East Tensions Send Oil Prices Soaring
Oil prices surged by over seven percent on July 29 as tensions in the Middle East escalated. Brent crude futures rose $6.16, or 7.33 percent, to $90.25 a barrel, while US West Texas Intermediate crude gained $5.40, or 6.81 percent, to $84.65.
The jump in prices was attributed to renewed military strikes in the Middle East and Iranian officials' reiteration of their desire 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.
UBS analyst Giovanni Staunovo noted that '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 are lifting oil prices again.'