Oil Prices Surge 7% Amid Escalating West Asia Airstrikes

Oil prices surged by over 7% on Wednesday as airstrikes in West Asia escalated, adding to concerns about dwindling supply. The U.S. and Saudi Arabia launched strikes on Iran-backed groups in Iraq, blaming them for drone attacks on Saudi oil facilities.

Brent futures jumped $6.16 to $90.25 a barrel, while U.S. West Texas Intermediate crude gained $5.40 to $84.65 a barrel. Analysts pointed to the renewed military action and Iran's efforts to control shipping through the Strait of Hormuz as key drivers behind the price increase.

The U.S. government reported that U.S. crude oil inventories fell to a multi-year low, with stockpiles dropping by 7.2 million barrels to 404.5 million barrels last week. OPEC+ is also likely to halt oil output increases for three months starting in October, according to sources.