Oil Prices Soar as Middle East Airstrikes Escalate Tensions

Oil prices surged on Wednesday as airstrikes resumed in the Middle East, sparking concerns about dwindling supply. Brent futures settled at USD 90.74 a barrel, up USD 6.65 or 7.91 percent, while US West Texas Intermediate crude gained USD 5.20 or 6.56 percent to USD 84.46 a barrel.

The price increase follows the resumption of airstrikes in the region, with the US and Saudi Arabia launching strikes on Iran-backed groups in Iraq. The strikes came after the US military reported averting a surprise Iranian attack on US troops in the area.

Iran has denied any involvement in the drone attacks on Saudi oil facilities, but its actions in the region have contributed to the escalation of tensions. Analysts warn that the situation is rapidly pricing in an enhanced risk to supplies in the region.

'We believe Brent oil prices will continue to whipsaw in the USD 80-USD 100 per barrel range in the near term as the conflict ebbs and flows in the Middle East,' said Suvro Sarkar, head of energy research at DBS Bank.