Commodities
Middle East Tensions Send WTI Crude Oil Prices Soaring
WTI crude oil prices neared $99.30 on Tuesday, climbing about 1.3% and reaching a multi-month high last seen on May 21.
The main driver behind this increase was supply disruption risks in the Middle East following drone attacks from Iraqi territory near the Iranian border.
Saudi Arabia temporarily shut the East-West pipeline after the attacks, while Iran-backed Houthi forces attacked a Saudi air base and seized Yemen's Red Sea coast, including the Bab al-Mandab Strait, last week.
The tensions around the Strait of Hormuz added to the risk premium, with over 20 million barrels of oil flowing through it daily, accounting for roughly 20% of global petroleum liquid consumption.