Oil Prices Soar on Iran's Claim to Target US Assets in Kuwait

Oil prices surged on Friday after Iran claimed to have targeted US assets at Kuwait's Ahmad Al-Jaber airbase, sparking concerns about potential disruptions to Middle East supplies.

The front-month West Texas Intermediate (WTI) rose 1.4% to $84.76 a barrel, while Brent added 1.1% to $89.97 as markets digested the news and weighed the risks of further escalation.

Investors were cautious about the uncertainty surrounding the incident, but some saw it as an opportunity for oilfield services firms to benefit from increased drilling activity in response to higher crude prices.

The Philadelphia Oil Service Sector Index jumped 1.8%, suggesting that traders expect producers to respond to higher prices by increasing spending on drilling and well completions, which would feed into demand for oilfield services.