Oil Prices Soar on Escalating Tensions in the Middle East

Oil prices surged on Wednesday after a series of escalating tensions in the Middle East. The US and Saudi Arabia launched joint strikes against Iran-backed groups in Iraq, which were targeting Saudi energy infrastructure.

The strikes followed the interception of ballistic missiles launched by Iran towards US forces in the region. US Central Command said it intercepted the missiles, calling it an 'attempted surprise attack' by Tehran.

Saudi Arabia also confirmed that its armed forces carried out targeted strikes against Iranian-backed groups in Iraq. The development dampened expectations for a swift de-escalation in the Persian Gulf.

Oil prices rose sharply as a result, with Brent futures increasing by $3.30, or 3.9%, to $87.39 a barrel, while US West Texas Intermediate crude rose $3.05, or 3.8%, to $82.31 a barrel.