Middle East Tensions Send Oil Prices Soaring Over $3
Oil prices surged on Wednesday as escalating tensions in the Middle East raised concerns over global energy supplies. Brent crude futures rose $3.30, or 3.9%, to $87.39 a barrel by 0300 GMT, while US West Texas Intermediate (WTI) crude increased $3.05, or 3.8%, to $82.31 a barrel.
The increase followed the US military's announcement that it had intercepted ballistic missiles launched by Iran toward US forces in the Middle East. Washington described the incident as an attempted surprise attack by Tehran, while Iran's Islamic Revolutionary Guard Corps said it had targeted a US air base and Central Command facility in Jordan.
Saudi Arabia also said its forces, in coordination with US Central Command, carried out targeted strikes against Iran-backed groups in eastern Iraq, which Riyadh blamed for drone attacks on its oil facilities. ING analysts said the latest developments had reduced expectations for a quick de-escalation in the Persian Gulf, adding fresh support to oil prices.