Oil Prices Soar as Trump Vows Response to Iran's Surprise Missile Attack

Oil prices surged on Wednesday, rebounding from their steep weekly slide, after a surprise missile attack by Iran was repelled and US President Donald Trump vowed to respond.

The sudden attack, which was launched at U.S. forces based in the Middle East, sent oil prices soaring. Trump said that the U.S. military had 'just minutes' to shoot down the incoming missiles and would respond by 'hitting them hard.'

Trump's statement helped push the price of Brent crude up 6.5% to $87.82 a barrel, while the US West Texas Intermediate (WTI) climbed 7% to $87.84 a barrel.

The price increase was also underpinned by reports that OPEC+ is considering pausing further production increases for three months from October and that U.S. commercial crude oil inventories fell by 7.2 million barrels in the week of July 24, an unexpected draw compared to expectations.