Oil Prices Soar Amid Escalating US-Iran Tensions

Oil prices rose significantly on Wednesday after joint strikes in Iraq by the United States and Saudi Arabia, and the interception of Iran's ballistic missiles aimed at U.S. forces in the Middle East.

Brent futures increased by $3.15, or 3.8%, to $87.24 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $2.73, or 3.4%, to $81.99 a barrel.

The latest developments dampen expectations for a swift de-escalation in the Gulf, according to ING analysts, who noted that 'renewed strength comes after the U.S. said it intercepted a surprise attack on U.S. troops.'

Oman presented Iran with a plan backed by Gulf states to manage the Strait of Hormuz, but Tehran has ruled out Oman's proposal for regional joint management of the waterway.

U.S. crude inventories fell by about 3.3 million barrels in the week ended July 24, and OPEC+ is likely to halt oil output increases for three months starting in October.