Oil Prices Soar as Middle East Tensions Escalate Again

Oil prices surged by over 7% on Wednesday as Middle East airstrikes escalated, sparking concerns about dwindling supply. Brent futures settled at $90.74 a barrel, while U.S. West Texas Intermediate crude gained to $84.46 a barrel.

The increase in oil prices came after the U.S. and Saudi Arabia launched strikes on Iran-backed groups in Iraq, citing drone attacks on Saudi oil facilities. The airstrikes followed hours after the U.S. military reported averting an Iranian attack on its troops in the region.

'The market is rapidly pricing in the enhanced risk to supplies in the region once again,' said John Kilduff, partner at Again Capital. President Donald Trump's promise of further strikes against Iran also fueled prices.

The U.S. imposed new sanctions on 10 entities and eight more tankers related to Iran's efforts to 'monetize the Strait of Hormuz.' Iranian officials have ruled out Oman's proposal for joint management of the strait, citing concerns over security and regional control.