Oil Prices Soar 5% as Middle East Clashes Escalate

Oil prices surged by as much as 5% on July 28 after clashes resumed in the Middle East, including an attempted surprise Iranian attack on American forces and drone strikes targeting Saudi oil facilities. West Texas Intermediate rose to above $83 a barrel, recouping part of a 14% slide over the previous three trading sessions.

The U.S. military described Iran's Islamic Revolutionary Guard Corps as firing several ballistic missiles at U.S. forces in the region, which were all intercepted. Meanwhile, attacks targeting Saudi oil facilities continued, with an Iran-backed Iraqi militia launching drones toward eastern Saudi Arabia for a second straight day.

Saudi Arabia's Defense Ministry said the drones were intercepted but did not disclose whether the facilities were damaged. The resurfacing of supply concerns and restricted crude shipments through the Strait of Hormuz contributed to the price increase.