Mideast Tensions Fuel Oil Price Surge to $87.83

Oil prices rose significantly on Wednesday after joint U.S.-Saudi strikes in Iraq and the interception of Iranian ballistic missiles targeting U.S. forces in the Middle East.

The price surge was also driven by a decline in U.S. crude inventories, which fell by about 3.3 million barrels in the week ended July 24.

Brent crude futures climbed $3.74, or 4.45 percent, to $87.83 a barrel, while U.S. West Texas Intermediate (WTI) crude gained $3.43, or 4.33 percent, to trade at $82.69 a barrel.

The escalation of Mideast tensions has raised concerns about regional energy security, with Saudi Arabia saying it had intercepted drones and missiles targeting oil facilities in its Eastern Province.