Oil Prices Soar as US-Iran Conflict Escalates
Crude oil prices rose sharply on Thursday as tensions escalated in the Middle East following U.S. military action against Iranian positions.
The price of Brent crude, the global benchmark, gained 2.6% to reach $93.10 per barrel, while West Texas Intermediate (WTI) futures added 1.3% to trade at $85.57 per barrel.
The increase in oil prices came after the U.S. military launched a series of airstrikes against dozens of Iranian targets, including missile and drone facilities, coastal surveillance posts, and defense sites.
The conflict has also spread beyond the Gulf region, with Egyptian authorities reporting drone strikes on two natural gas vessels operating off its coast, and the Iran-aligned Houthi group stepping up attacks on commercial shipping and Saudi-linked energy assets around the Red Sea and the Bab el-Mandeb Strait.
In addition to the geopolitical tensions, the U.S. Energy Information Administration reported a sharp drop in crude inventories, which fell by 7.2 million barrels last week to their lowest point since 2018.