Middle East Tensions Send Oil Prices Soaring Over 4%
Oil prices surged over 4% on Wednesday as US-Iran tensions escalated following US and Saudi strikes in Iraq and an intercepted Iranian missile attack. Brent futures rose $3.72, or 4.4%, to $87.81 a barrel by 1025 GMT, while WTI crude gained $3.43, or 4.3%, to $82.69 a barrel.
UBS analyst Giovanni Staunovo attributed the price jump 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.'
The US and Saudi Arabia launched strikes on Iran-backed groups in Iraq, blaming them for drone attacks on Saudi oil facilities. Meanwhile, Iran said it had fired on ships in the Strait of Hormuz and at US bases in Jordan.
Yemen's Houthi group is also considering imposing fees on commercial ships sailing through the southern Red Sea, according to regional sources with knowledge of the matter.