Oil Prices Soar as Mideast Tensions Escalate After US-Iran Conflict
Oil prices surged more than 4% on Wednesday as tensions in the Middle East escalated following US and Saudi strikes in Iraq and an intercepted Iranian missile attack on US forces.
The Brent futures rose $3.72, or 4.4%, to $87.81 a barrel by 1025 GMT, while U.S. West Texas Intermediate (WTI) crude gained $3.43, or 4.3%, to $82.69 a barrel.
UBS analyst Giovanni Staunovo said the renewed military strikes and Iran's desire to control shipping activity through the Strait of Hormuz are lifting oil prices again.
The situation has escalated since US President Donald Trump signalled a return to diplomacy earlier in the week, according to Suvro Sarkar, head of energy research at DBS Bank, who believes Brent oil prices will continue to whipsaw in the $80-$100 per barrel range in the near term.