Oil Prices Soar After Iranian Missile Attack on US Forces

Oil prices surged on Wednesday after an Iranian missile attack on US forces in the Middle East. West Texas Intermediate crude futures jumped 4.7% to approximately $82.93 a barrel, while Brent crude futures climbed more than 3% to $85.75 a barrel.

The attack came as negotiations to reopen the Strait of Hormuz were gaining momentum, according to The Wall Street Journal. US Central Command confirmed that its forces managed to shoot down all incoming missiles in what officials described as an attempted surprise attack.

Despite the market's reaction to the oil price increase, investors are also keeping a close eye on the Federal Reserve's interest rate decision later in the day. According to CME Group's FedWatch tool, the probability that the central bank leaves its benchmark rate unchanged within the 3.5%, 3.75% target range stands at close to 70%, while the prospect of a hike stands at just under 30%