Middle East Tensions Send Oil Prices Soaring Almost 7%
Oil prices surged nearly 7% on Wednesday as major airstrikes resumed in the Middle East and dashed hopes for an imminent end to the U.S.-Israeli war with Iran.
The U.S. and Saudi Arabia launched strikes on Iran-backed groups in Iraq, blaming them for drone attacks on Saudi oil facilities.
Iran had previously fired on ships in the Strait of Hormuz and at U.S. bases in Jordan, according to Iranian officials.
Brent futures rose $5.70, or 6.8%, to $89.79 a barrel by 1335 GMT, while U.S. West Texas Intermediate (WTI) crude gained $4.94, or 6.2%, to $84.20 a 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.'