Oil Prices Spike as Middle East Tensions Escalate
Oil prices rose by nearly 1% on Wednesday to their highest level in three weeks as investors grew increasingly concerned about escalating tensions in the Middle East.
The price of Brent crude futures increased by $0.87, or almost 1%, to $91.89 per barrel at 11 a.m. ET (1600 GMT), while U.S. West Texas Intermediate crude futures rose by $1.17, or 1.4%, to $86.11 per barrel.
The surge in oil prices comes as the United Arab Emirates suspended all financial and economic transactions with Iran following recent missile attacks, while shipping through the Strait of Hormuz remains slow due to uncertainty over the waterway's reopening.
'Crude futures remain supported by the geopolitical tensions that remain in the Middle East,' said Dennis Kissler, senior vice president of trading at BOK Financial.