Oil Prices Soar on Middle East Tensions and OPEC+ Output Concerns

Oil prices surged nearly 4% yesterday after three consecutive sessions of losses, driven by rising tensions in the Middle East and expectations that OPEC+ might slow planned output increases.

Brent crude futures climbed to around $87.70 a barrel, while US West Texas Intermediate (WTI) crude rose to about $82.63 a barrel in early trade.

The gains followed reports of fresh tensions between the US and Iran, including the downing of several missiles by the US armed forces and Saudi Arabia's shooting down of drones heading towards their oil facilities.

Investors are concerned that these developments could disrupt supplies, particularly through the Strait of Hormuz, one of the busiest channels for oil transportation in the world.