Oil Prices Soar as US-Iran Tensions Escalate Ahead of Fed Decision

Crude oil prices surged more than 7% on Wednesday as renewed US-Iran hostilities and threats to shipping through the Bab el-Mandeb pushed WTI above $84 and Brent toward $90, just hours before the Federal Reserve's interest-rate decision.

The rally accelerated after President Donald Trump told Fox News that the United States would 'hit Iran hard' following an attack on a US base in Jordan. The Houthis also weighed imposing fees on commercial shipping through the Bab el-Mandeb Strait and US-Saudi forces launched fresh strikes against Houthi positions in Yemen.

Brent crude was up 7.06% at 9:29a.m. ET Wednesday, reaching $90.03, while WTI was trading up 6.95%, at $84.77.