Oil Prices Soar 7% Amid Escalating Tensions in Middle East

Oil prices surged nearly 7% on Wednesday, pushing Brent crude close to the $90-a-barrel mark. The escalation of tensions in the Middle East has dashed hopes of a diplomatic breakthrough after US President Donald Trump had earlier signalled a return to negotiations.

The United States and Saudi Arabia launched strikes on Iran-backed groups in Iraq, accusing them of carrying out drone attacks on Saudi oil facilities. This move came hours after the US military said it had foiled a surprise Iranian attack on American troops in the region.

Iran, meanwhile, said it had fired on ships in the Strait of Hormuz and at US bases in Jordan. The latest escalation has further reduced expectations of a resolution to the months-long disruption in one of the world's most critical oil shipping routes, the Strait of Hormuz.

OPEC+ is expected to pause planned oil output increases for three months starting in October after completing the scheduled return of barrels following voluntary production cuts. This development will add to concerns over disruptions to global oil supplies and support crude prices.