Oil Prices Soar Amid US-Saudi Strikes and Iranian Missile Interception
Oil prices rose sharply on Wednesday after joint strikes by the US and Saudi Arabia in Iraq, along with the interception of Iran's ballistic missiles aimed at US forces in the Middle East. Brent futures increased by $3.15, or 3.8%, to $87.24 a barrel, while US West Texas Intermediate (WTI) crude rose $2.73, or 3.4%, to $81.99 a barrel.
According to ING analysts, 'renewed strength comes after the US said it intercepted a surprise attack on US troops,' which dampens expectations for a swift de-escalation in the Gulf. The strikes came hours after the US military said it averted a surprise Iranian attack on US troops in the region.
Oman presented Iran with a plan backed by Gulf states to manage the Strait of Hormuz, including collecting voluntary fees for its use. However, Tehran has ruled out Oman's proposal, which could affect global crude oil and natural gas shipments.
DBS Bank's head of energy research, Suvro Sarkar, believes that Brent oil prices will continue to 'whipsaw in the $80-$100 per barrel range in the near term as the conflict ebbs and flows in the Middle East.'