Middle East Tensions Send Oil Prices Soaring Nearly 7%
Oil prices jumped by nearly 7% on Wednesday as airstrikes resumed in the Middle East, sparking concerns about dwindling supply.
The US and Saudi Arabia launched strikes against Iran-backed groups in Iraq, blaming them for drone attacks on Saudi oil facilities. This move came after the US military said it had averted a surprise Iranian attack on US troops in the region.
Iran responded by saying it had fired on ships in the Strait of Hormuz and at US bases in Jordan. In Egypt, explosions hit a natural gas loading port on the Mediterranean Sea, with a British maritime security company reporting that a US-owned floating storage tanker was hit by a drone.
The market is pricing in enhanced risks to supplies in the region once again, according to John Kilduff, partner at Again Capital. Brent futures settled at $90.74 a barrel, up 7.91% from Tuesday's close, while US West Texas Intermediate crude gained 6.56% to $84.46 a barrel.