Middle East Tensions Send Oil Prices Soaring by $3 per Barrel

Oil prices surged by around US$3 per barrel on Wednesday due to escalating tensions in the Middle East. The price of Brent futures contracts, the global oil benchmark, rose US$3.15 or 3.8 percent to US$87.24 per barrel at 08:20 Saudi time.

The uptick came after the US and Saudi Arabia attacked Iranian-backed groups in Iraq, accusing them of being behind a drone attack on Saudi Arabian oil facilities. Iran warned that blaming Tehran for the attack was a 'big miscalculation.'

Tensions have also put pressure on traffic in the Strait of Hormuz, with only five commodity carriers crossing the line on Tuesday. The movement of tankers is still low.