Oil Prices Soar After Joint US-Saudi Strikes in Iraq
Oil prices surged more than $3 per barrel on Wednesday after joint US-Saudi strikes in Iraq and the interception of Iranian ballistic missiles aimed at US forces in the Middle East. Brent futures rose by $3.30, or 3.9%, to $87.39 a barrel, while U.S. West Texas Intermediate (WTI) crude climbed $3.05, or 3.8%, to $82.31 a barrel.
The US military intercepted ballistic missiles fired by Iran toward US forces in the Middle East, describing it as an attempted surprise attack by Tehran. Saudi Arabia said its armed forces, coordinating with U.S. Central Command, carried out targeted strikes against Iran-backed groups in Iraq that it blamed for drone attacks on the kingdom's oil facilities.
The latest developments have dimmed hopes for a quick de-escalation in the Persian Gulf, according to ING analysts. US crude inventories fell by about 3.3 million barrels in the week ended July 24, adding further support to prices. OPEC+ is likely to pause oil output increases for three months starting in October.